Requirements for audit exemption

Updated 1 year ago by Junie Zhu

Qualification for audit exemption

A Company is exempted from audit requirements if it meets the following criteria as a “Small Company”:

  1. It is a private company in the financial year in question; and
  2. It meets at least 2 of 3 following criteria for immediate past two consecutive financial years:
    1. Total annual revenue ≤ $10m;
    2. Total assets ≤ $10m;
    3. No. of employees ≤ 50.

For a company which is part of a group, it should meet the following criteria for audit exemption:

  1. The company must qualify as a small company; and
  2. Entire group must be a “small group”. For a group to be a small group, it must meet at least 2 of the 3 following quantitative criteria on a consolidated basis for the immediate past two consecutive financial years.
  • Total annual revenue ≤ $10m;
  • Total assets ≤ $10m;
  • No. of employees ≤ 50.

Disqualification for audit exemption

Where a company has qualified as a small company, it continues to be a small company for subsequent financial years until it is disqualified.

A small company is disqualified if:

  1. it ceases to be a private company at any time during a financial year; or
  2. it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.

Where a group has qualified as a small group, it continues to be a small group for subsequent financial years until it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.


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