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.
In order to ease the administrative burden and compliance costs for small companies, the option of audit exemption is available. The detailed legislation is set out over sections 358 to 364 of The Companies Act 2014, as amended.
The exemption is available to private companies that are classified as "small". In order to be so classified, the company must satisfy at least 2 of the following criteria:
The above criteria are proportionately adjusted if the accounting period covers other than one year.
There are some other relevant conditions:
In order to avail of audit exemption the directors must pass a resolution to that effect and ensure it is properly recorded. There are also declarations by directors to be included on the face of the balance sheet regarding the entitlement to the exemption and the acknowledgement of obligations under the Companies Act 2014.