Audit Exemption - technically insolvent company

jailhouse_dave

hi, i am wondering if anyone can tell me if a technically insolvent company (negative net asset value) is entitled to audit exemption if all other criteria are met. I cant find any issue with technically insolvent companies claiming the exemption on the CRO site.

thanks in advance

dbran

Hi

It would not be an issue assuming all the other criteria are met.

Kind Regards


dbran

J.Ryan

jailhouse_dave wrote: »

hi, i am wondering if anyone can tell me if a technically insolvent company (negative net asset value) is entitled to audit exemption if all other criteria are met. I cant find any issue with technically insolvent companies claiming the exemption on the CRO site.

thanks in advance

The defination of insolvent is being unable to pay your bills as and when they fall due, if you believe that your company is insolvent you have legal obligations.

Currently you are in a negative net asset position, which may be completely different than being insolvent.

sandyhills

If your company is insolvent, i.e. insolvent per its balance sheet or cannot pay its debts as they fall due, the directors need to take steps to wind up the company unless the directors have documented their opinion that they can trade out of the financial difficulties.

a company has no issue claiming audit exemption but should not trade insolvent for a long period of time

NumbrCrunchr

There is no issue as regards Audit exemption
Regards
Numbercruncher