Does a UK Plc always require an audit?

[youngsyr]

Hi all, just looking at the requirements of a standalone UK plc and can anyone tell me if a UK Plc alwawys requires an audit, regardless of size or actiivity?

Seems to me that it does, unless it's dormant or the subsidiary of an audited parent?

I'm looking at a Plc with just a handful of relatively low value (total much less than £1m) transactions going through it, but it seems it would still need an audit?

Thanks for any help offered.

[Eric Mc]

As far as I am aware, yes. It's one of the requirements if you go down the PLC route i.e. greater scrutiny.

There are also more onerous reporting and filing requirements - so overall, the accounts and audit fees would be quite a bit higher than for a similar sized ordinary limited company.

[youngsyr]

Thanks Eric.

[MadProfessor]

Audits are required for all companies unless an exemption is applied. Exemptions include charities and small companies which is defined by turnover. From 1 Jan 2016 this is turnover under £10.2m, assets under £5.1m and fewer than 50 employees.

A public limited company must have at least £50,000 in share capital amomg other onerous requirements on board meetings and paperwork which means that, typically, only larger companies that wish to be listed on a stock market are registered as PLCs. However, you could in theory have an unlisted PLC and a small PLC.

A wholly owned PLC subsidiary of another PLC doesn't require auditing if the parent company accepts all liabilities for the subsidiary.

A private limited company also needs to be audited unless it meets the exemption on size. Therefore, a PLC will usually be audited but that's not really to do with the distinction between public or private.

[Shirt587]

MadProfessor said:

However, you could in theory have an unlisted PLC and a small PLC.

In a past life, many years ago, I managed audits that included both of those... Unlisted PLC was a solid business in the 1960s, when people made money by hitting things with hammers, but didn't change either approach or product line at all over the next 40 years, so unsurprisingly shrank and was completely in the sh*te.