Audit costs

bistro

Hi

working with a small start up limited company whose first set of accounts have just being complied, however, they are late late late!
A statutory andit now has to be completed for the companies registration office.
There were 2 creditors at year end with no debtors and a turn over of approx 13k with all invoices being paid via cheque or credit card. The 2 directors are 50/50 with no outside shareholders or investors.
Can some one give me a rough idea of whats involved and what cost this audit will be?

thanks all

ybbi

Probably an audit could be 500-2000 range, if there is very little transactions in the company, the main thing is work involved for the auditors, completing an audit file, and going through all the red tape.

whatawaster

bistro wrote: »

Hi

working with a small start up limited company whose first set of accounts have just being complied, however, they are late late late!
A statutory andit now has to be completed for the companies registration office.
There were 2 creditors at year end with no debtors and a turn over of approx 13k with all invoices being paid via cheque or credit card. The 2 directors are 50/50 with no outside shareholders or investors.
Can some one give me a rough idea of whats involved and what cost this audit will be?

thanks all

no matter how small the company is, there are still numerous procedures the audit firm has to go through (standard letters, PQA's etc). Depending on the size of your audit firm, the actual audit will probably be carried out by a trainee (could take a couple of days at a minimum of 50 euro an hour) and a review by the audit partner taking a couple of hours.

I would be absolutely amazed if it cost any less than 1000.

Ideo

Surely you're audit exempt, no?

ninty9er

Ideo wrote: »

Surely you're audit exempt, no?

CRO wrote:

A claim for audit exemption does not arise when a new company is filing its first annual return (required to be made up to the six-month anniversary of the date of incorporation) as no accounts are required to be attached to the first annual return. Audit exemption may be claimed however at the time of the company's first annual return with accounts or when subsequent annual returns are being filed.

Unless the financial year in respect of which the audit exemption is being claimed is the first financial year of the company, the company must also have satisfied all the conditions set out in section 32(3) in respect of the preceding financial year. For instance, if the most recent company's annual return with accounts was delivered late to the CRO or if the current years return is being delivered late, the company is not entitled to the audit exemption, notwithstanding that it may satisfy all the remaining conditions.

It looks like you could be audit exempt. You'll still need unaudited accounts. Should be cheaper.

The Buster

bistro wrote: »

Hi

working with a small start up limited company whose first set of accounts have just being complied, however, they are late late late!

Accounts are late - can't claim audit exemption

Ideo

But the company's turnover is only 13k so you dont need to have the accounts audited, right? still need to have them prepared, but i can't see a whole lot of work in it. Is all your paperwork in order OP? That'll cut down on your cost

jack90210

Once the accounts are late you can't claim the audit exemption as far as I am aware.

Kinetic^

jack90210 wrote: »

Once the accounts are late you can't claim the audit exemption as far as I am aware.

Aye doesn't matter how low the income is or even if there isn't any, you'll need an audit cert if it's late.