Audit Exemption Thresholds Reduced For Small Businesses

The audit exemption thresholds will be reduced for UK businesses with accounting periods ending on or after 1 October 2012. This will exempt thousands of UK businesses from audit provided they meet two out of the three criteria:

-Turnover less than £6.5m

-Net assets less than £3.26m

-No more than 50 employees

Subsidiary companies will also be exempt from audit provided their parent company guarantees their liabilities.