Companies Act 2014 section 378

Application of this Chapter in cases where audit exemption available, etc.

Section 378 addresses what happens to the requirement for an auditor's report on revised financial statements when a company qualifies for, or nearly qualifies for, the audit exemption.

• Where a company revises its financial statements and the revised figures show it qualifies for the audit exemption, the company may avail of that exemption for the relevant financial year.
• Even if the company would have qualified for the audit exemption but missed the deadline for the directors' decision solely because of the time needed to prepare the revised statements, it is still treated as exempt.
• In either of these situations, all references in this Chapter to a statutory auditor's report are effectively removed — meaning no auditor's report is required on the revised financial statements.
• This ensures companies are not penalised by having to obtain an auditor's report on revised statements when they would otherwise have been entitled to dispense with an audit altogether.

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