Audit exemptions and useful links

Audit exemptions

The main restriction on the work that can be undertaken by members of AAT is the audit threshold. Anyone can prepare the accounts. However, if the company requires an audit then that must be signed off by a registered auditor. Charities can either be audited or undertake a form of audit called an independent examination. Whether an audit is required depends on the company or charity’s turnover or gross income.

Useful documents and links

If you provided the accounts that you have prepared to be sent, in support of a mortgage application or loan, to a bank or building society then you may find this covering letter useful.

Accounting Standards (IFRS Standards)

The accounting standards that a member or student would use to prepare the financial statements of an entity may depend upon:

  1. the legal requirements of the country (State, jurisdictions)
  2. the type of entity (business, charity, government organisation etc)
  3. the legal status of the entity (sole trader, partnership, private limited company, public limited company etc)
  4. the size of the entity.

If the IFRS Standards or the IFRS for SMEs Standard can be used then here are some of the relevant links:

  1. List of IFRS Standards 
  2. The IFRS for SMEs Standard
  3.  List of all the latest unaccompanied IFRS Standards and IFRIC Interpretations by language 

The International Financial Reporting Standards (IFRS) Foundation has a standard-setting body called the International Accounting Standards Board (IASB) that sets the IFRS Standards.

Please note that some countries use endorsed or modified versions of the IFRS Standards and IFRS for SMEs Standard (e.g. United Kingdom).

Accounting Standards (UK and Ireland)

The Audit, Reporting and Governance Authority (ARGA) will be replacing the Financial Reporting Council (FRC) which currently sets UK and Ireland accounting standards.

View a full list of FRS standards

Statements of Recommended Practice (SORPs) - UK

View a full list of SORPs 

Effective for periods commencing on or after 1 January 2019.

Tax (HMRC guidance)

Here is a comprehensive list of tax agent toolkits that cover the following subjects:

  • Capital Gains Tax toolkits
  • Companies toolkits
  • Employer toolkits
  • Toolkits for individuals
  • Property rental toolkit
  • VAT toolkits
  • Trusts and estates toolkits

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