Is An Audit Necessary For A UK Subsidiary?

Frequently, many UK subsidiaries of international businesses are not aware that they need an audit and are at risk of costly penalties, and even criminal proceedings, for failing to plan for and organise an audit when required.

In this blog, Stephan Schmitt, outlines the key requirements for UK subsidiaries of overseas groups who are determining whether they require a statutory audit.

In the UK, all companies are mandated by law to undergo an audit, unless they meet specific requirements that make them eligible for exemption. In the context of this article, the size of the subsidiary and its group, where the term 'group' refers to the parent company consolidated with its subsidiaries, will determine if they reach the eligibility criteria for exemption from a statutory audit.