SUBSIDIARY AUDIT EXEMPTION - PAUSE FOR THOUGHT

摘要

New legislation has been introduced which means that for years ending on or after 1 October 2012 some UK subsidiary undertakings are exempted from audit if an EEA (European Economic Area) parent guarantees its liabilities, although quoted subsidiaries and those in the financial sector are not eligible. This is part of the government's drive to reduce costs for business. There are a number of conditions to be met of course before advantage can be taken of the exemption. In particular, the parent must guarantee all of the liabilities of the subsidiary in question, the subsidiary must be included in a set of consolidated accounts compliant with EU law and all of its shareholders must agree to the exemption annually.