Cork & Mallow  
   


Audit

  • Statutory Audit
  • Audit Exemption
  • Internal Audit

Audit in Ireland

The annual audit in Ireland is a statutory requirement for all limited companies, except for those companies who have availed of audit exemption having met the necessary criteria.

Audit Exemption

The option of audit exemption is available to some companies in Ireland where certain criteria are satisfied.  Audit exemption should be considered by the Directors of companies that meet the aforementioned criteria.

Criteria for audit exemption

On the 3rd of August 2012 Statutory Instrument 304 of 2012 changed the size criteria of a small company. Under the new legislation a company can now be defined as a small company provided the turnover does not exceed €8,800,000 and the balance sheet total does not exceed €4,400,000.

Prior to the enactment of Statutory Instrument 304 a private company qualified to be a small company if in the year and the previous financial year it satisfied two of the three conditions:

  • Balance Sheet total not exceeding €1,904,607
  • Turnover not exceeding €3,809,214
  • Average number of employees not exceeding 50
  • Now the size criteria are:

  • Balance Sheet total not exceeding €4,400,000
  • Turnover not exceeding €8,800,000
  • Average number of employees not exceeding 50

This change in legislation removes the previous anomaly in Irish Company Law whereby you could potentially have a medium sized audit exempt company.

The biggest advantage that this change creates for small companies is in relation to the reduced requirement for information in their abridged accounts under the Companies Act 1986. Small company abridged accounts do not need to include directors reports, profit and loss accounts and the notes do not necessarily need to give a true and fair view, substancially reducing the requirements for note disclosures back to the bare statutory note disclosure requirements.

In addition to the conditions above, the Annual Return of the company to which the current financial year’s accounts must be annexed, and the Annual Return to which the previous financial year’s accounts were annexed must be lodged in the Companies Registration Office before certain specified deadlines.

Contacts:

Cork  
Tom Daly FCPA

Eamon Sharkey B.Comm, MBS, ACA
Tel. 353-21-4270192
Mallow  
Donal Collins FCA donal.collins@obriencahill.ie
Tel. 353-22-21079