- 1. What is an audit?
An audit is an examination of a company’s financial statements as prepared by the directors of the company. The audit is carried out by a qualified auditor who reports an opinion to the members as to whether the financial statements give a true and fair view of the company’s finances and agree with its books of account.
Please refer to ODCE Information Booklet and Quick Guide on Companies
- 2. What is audit exemption?
Audit exemption is the removal of the need to have the financial statements of a company examined and reported on by a qualified auditor
- 3. Who can avail of audit exemption?
Some private limited companies can elect not to have an audit if they meet certain conditions, including having a turnover of less that €7.3m, a balance sheet total less than €3.65m, an average number of 50 or less employees and, are up to date with their filing obligations with the CRO. Public companies, including companies limited by guarantee, cannot avail of audit exemption.
- 4. Can members request an audit?
Yes. A company cannot avail of audit exemption if 10% of members with voting rights request that the financial statements be audited. Section 33 of the Companies (Amendment) (No. 2) Act 1999 refers.
- 5. What is an auditor?
An auditor is an independent professional person who is qualified to audit a company’s financial statement and holds a valid practising certificate from one of the six recognised accountancy bodies. A register of auditors is maintained by the CRO.
- 6. How are auditors appointed?
The directors of a new company usually appoint its first auditor and thereafter the members appoint or reappoint the auditor at each AGM