This is a question from Chapter quiz in BPP’s study text:
‘There is no legal requirement for an LLP to be audited’. Is this statement true or false?
Answer is False. ‘An LLP may be required to audit if it fulfills certain criteria.
What is the criteria? I mean in which conditions an LLP may have to be audited?
Thanks in advance.
This is from:
The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008
“Requirement for audited accounts
(1) An LLP’s annual accounts for a financial year must be audited in accordance with this Part unless the LLP is exempt from audit under:
(a) section 477 relating to small LLPs, or
(b) section 480 relating to dormant LLPs
(2) An LLP is not entitled to any such exemption unless its balance sheet contains a statement by the members to that effect
(3) An LLP is not entitled to exemption under any of the provisions mentioned in subsection (1)(a) unless its balance sheet contains a statement by the members to the effect that the members acknowledge their responsibilities for complying with the requirements of this Act with respect to accounting records and the preparation of accounts
(4) The statement required by subsection (2) or (3) must appear on the balance sheet above the signature required by section 414”
I believe that that answers you!
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