I have decided broadly to accept the company law review group's recommendations following a recommendation of the Task Force on Small Business on the exemption of private limited companies with an annual turnover of under £100,000, from the statutory audit requirement subject to certain restrictions and conditions also recommended by the group. Among the conditions listed by the group are the requirement on directors to make a signed statement acknowledging their statutory responsibilities in relation to accounts and certifying eligibility to avail of the exemption; the right of shareholders holding a minimum of 10 per cent of the voting rights to require an audit; and the exclusion of companies in regulated industries such as banking or insurance, and members of a group of companies from the proposed exemption. I may also have some additional conditions that I would wish to apply to an exemption scheme.
I do not propose at present to differentiate between trading, service, or other companies and no such proposal was included in the recommendations of the company law review group or the Task Force on Small Business.
There has been no indication that new or additional practice requirements from the Revenue Commissioners would be introduced by the Minister for Finance arising from the removal of the statutory audit. Both the Department of Finance and the Revenue Commissioners were represented on the company law review group.
I intend to put proposals to Cabinet in the near future with a view to introducing the enabling legislation for removal of the statutory audit as soon as possible.