As a general rule, companies are subject to statutory audit requirements. However, amendments to the Companies Act introduced limited exemptions for certain small companies meeting specified turnover and asset or liability thresholds. The exemption does not apply to every company, and foreign companies are excluded from the small-company exemption.
Auditor appointment
Where an auditor is required, the auditor must be licensed under prevailing law. For a public company, appointment is generally made by the general meeting. A private company follows its Memorandum, Articles or unanimous agreement, and otherwise the general meeting appoints the auditor.
Before the first AGM, the board appoints the auditor.
Filing after appointment
The auditor's appointment information must be provided to OCR within the statutory period.
Important point
A company should not rely on a generic “small company” assumption. Its current turnover, assets, liabilities, regulatory status and applicable amendments should be checked before concluding that an audit is not required.