Is the audit simpler for a small company under the reporting exemption?

What is lighter

• The financial statements follow Part 1 of Schedule 4 only, so fewer disclosures.
• The auditor's report need not state whether the accounts give a true and fair view (s.406(1)(b)). It still states whether they were properly prepared in compliance with the Ordinance.
• The simpler accounting framework (for example fewer fair value and deferred tax complications) can reduce work.

What stays the same

• The auditor still decides risk and materiality, tests transactions and balances, obtains confirmations, and gets a representation letter.
• The auditor still reports on records, information obtained and consistency of the directors' report (s.407).
• Audit independence, eligibility and appointment rules are unchanged.

Fees Any saving depends on the firm and on your records; the quality of bookkeeping often matters more than the framework used.

Filing If the exemption relies on a members' agreement or resolution, the document goes to the Registrar within 15 days.

Ask the auditor in writing which framework they will use and whether the exemption applies to you before the audit starts.