Very Small Company missed ARD needs advice on Audit Report etc.

S

SiDay

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I missed my ARD with the CRO and as such forfeited the exemption from Audit. A friend of mine is a Certified Public Accountant, but is not a registered auditor - can she write the audit report.

My problem is that in the year in question the company is really a hobby it raised 2 invoices, worth only €760 and made only 2 payments (both expenses to me). The company made a loss of around €1000. I am having immense difficulty finding another auditor that will write a report for such a small amount of work. I do not want to pay a fortune to someone to look a 2 invoices and a bank statement so what are my alternatives - would it be more cost effective to make the company bankrupt ?
 
You MUST be on the Register of Auditors at the CRO to file an Audit Report. Filing an audit report while not qualified to do so is an offence and the ODCE take a very dim view of it.

Unfortunately company law is very strict. You can't make a company bankrupt as such , you could go for liquidation but that itself costs and the outstanding returns usually must be filed. Not filing leaves the directors open to prosection / fines by the CRO. It is not a pleasant situation but unfortunately setting up companies without sufficient knoowledge of the pitfalls can result in the situation you have.
 
SiDay said:
I missed my ARD with the CRO and as such forfeited the exemption from Audit. A friend of mine is a Certified Public Accountant, but is not a registered auditor - can she write the audit report.

My problem is that in the year in question the company is really a hobby it raised 2 invoices, worth only €760 and made only 2 payments (both expenses to me). The company made a loss of around €1000. I am having immense difficulty finding another auditor that will write a report for such a small amount of work. I do not want to pay a fortune to someone to look a 2 invoices and a bank statement so what are my alternatives - would it be more cost effective to make the company bankrupt ?
Click to expand...

You will have no choice but to get a auditor. In above case you will need an auditor for present set of accounts plus the next set of accounts before you get audit exemption back
or
get auditor to do accounts and strike company off voluntary.

For you own peace of mind get it solved as you are incurring daily fee in companies office for late fee.
 
Most of the Company Formation\Company Secretarial agencies have a service where they get an auditor to do this quite cheaply for non-trading companies. You are not quite in that bracket, but you are not too far off it. Maybe jsut ask them to do it for you as cheaply as they can.
 
Hi,

I am a registered auditor and I have come across this quite alot. Unfortunately you will need an audit report to file with your accounts and this audit report must be signed by a registered auditor. Auditors get inspections by their institutes so they must have a file with all the necessary documentation on it. This 'paper chase' is what makes an audit more expensive than just preparing a set of accounts.

If you are in the Leinster area, why not call in and speak to Patrick at O'KellySutton. Our office is in Kildare town - tel number 045 530777. I would have suggestions on how you can keep the fees to a minimum such as you preparing the accounts file & engaging us to complete the audit, tax returns CT1 & 46G and company secretarial items such as the minutes & B1.

Patrick
 
SiDay said:
I missed my ARD with the CRO and as such forfeited the exemption from Audit. A friend of mine is a Certified Public Accountant, but is not a registered auditor - can she write the audit report.

My problem is that in the year in question the company is really a hobby it raised 2 invoices, worth only €760 and made only 2 payments (both expenses to me). The company made a loss of around €1000. I am having immense difficulty finding another auditor that will write a report for such a small amount of work. I do not want to pay a fortune to someone to look a 2 invoices and a bank statement so what are my alternatives - would it be more cost effective to make the company bankrupt ?
Click to expand...

Would your friend be prepared to do most of the preparatory work, and then find an auditor for you? This would save you money if you don't have to pay your friend!?

Do you want to keep the company? Do you need it?
 
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