Companies Act 2014 section 360

Audit exemption

Section 360 sets out the practical effects of qualifying for the audit exemption under sections 358 or 359, disapplying the obligation to have statutory financial statements audited and identifying the other auditor-related provisions of the Act that cease to apply while the exemption is in force.

• Where a company or group qualifies under section 358 (non-group) or section 359 (group), the statutory obligation to have the financial statements audited under section 333 does not apply for that financial year.
• A range of other provisions — those that confer powers on statutory auditors, require actions by or in relation to auditors, or assume an auditors' report has been prepared — also fall away for that year.
• These disapplied provisions include requirements relating to the auditors' report on distributions, disclosure of audit remuneration, the form and signature of the auditors' report, circulation and publication of audited statements, annual return annexures, abridged financial statement reports, and the appointment and obligations of statutory auditors.
• If at any point during the financial year circumstances arise that mean the company or group no longer meets the exemption conditions, all of these provisions come back into effect for that year.