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SPS Audit - Audit and Assurance Sunshine Coat, Queensland T: 07 5442 3454 F: 07 5442 1360 M: 0400 6444 73 E-mail: Stephen@spsaudit.com.au |
WHAT COMPANIES REQUIRE AN AUDIT?
Although all companies should keep financial records to ensure they
understand how their operations are faring, there are some types of
companies that will need to keep these records for the purposes of
preparing and lodging financial reports with the Australian Securities &
Investments Commission (ASIC).
Generally, companies are required to lodge reports (including being
audited) with ASIC where:
• There are substantial sums of money involved
• The general public has invested funds with the company, or
• The company exists for charitable purposes only and is not intended to
make a profit.
Section 292 of the Corporations Act 2001 (Corporations Act) requires the
following entities to prepare financial reports and have their financial
reports audited:
• Public companies – normally, where the company has only Ltd after its
name, this is a public company as opposed to a Pty Ltd company which is
a private company.
• Large Private Companies – The definition of a large proprietary
company is if it satisfies 2 of the following 3 requirements;
Consolidated revenue (including any entities it controls) of $25 million
or more per annum, Gross assets (including any entities it controls) of
$12.5 million or more or 50 or more employees at the end of the
financial year.
• Small proprietary (private) companies that are foreign – controlled
• Small proprietary companies that ASIC direct to lodge financial
reports.
There are some limited exemptions from having to lodge financial reports
and have an audit done. Refer
www.asic.gov.au for more details.
Generally, Section 319 of the Corporations Act requires a company to
lodge the financial reports with ASIC within 4 months of the end of the
financial year.