Section 292 of the Corporations Act specifies that Large Proprietary Companies are required to lodge financial statements with ASIC. These statements must include an audit report.
You are able to gain relief from ASIC from having to have the financial statements audited.
There are a number of requirements you must meet to qualify for audit relief. Some of these are simple and procedural in nature.
The two that require additional attention are:
- The company must be well managed – having at least a system of quarterly management accounting in place and
- The company must be in sound financial condition i.e.
- the company’s total liabilities must not exceed 70% of it’s total assets
- it must be profitable from ordinary activities
- it must remain solvent
At Lister Mason we are able to help your company achieve audit relief.
Through our business advisory services we can help your company to proactively achieve these goals and at the same time increase the value of your business or would you rather pay auditors to come in after the fact to approve your financial statements? To find out more, please contact us