Statutory audit and audit exemption

What are the audit exemption limits?

A company can claim audit exemption as a small company if it stays within two of three limits: turnover of €15 million, a balance sheet total of €7.5 million and 50 employees. These limits apply to financial years beginning on or after 1 January 2024. The same test sets whether a company is micro, small or medium, which also decides how much it must file with the CRO.

What if my company goes over the limits for one year?

One year over the limits does not end small company status on its own. An established small company keeps its status until it has been over the limits for two years in a row, and a growing company needs two years in a row within the limits to become small.

When can a small company lose its audit exemption?

• Filing late twice. Since 16 July 2025, a company loses the exemption for two financial years if it files its annual return late and has also filed late in any of the five years before. A company's first annual return, and late returns filed before 16 July 2025, do not count as the earlier late filing.
• Being in a group. The group as a whole must be within the limits, and one late annual return by any company in the group still costs every company in the group the exemption for two years.
• Shareholders asking for an audit. Members with at least 10% of the voting rights can serve written notice during the previous financial year, or up to one month before the end of the year concerned.
• Company type. Some companies can never claim it, such as listed companies, banks and insurers.

Our guide Audit exemption: 2026 thresholds and rules covers group limits and dormant companies in more detail.

What does a statutory audit involve?

A statutory audit is an independent examination of a company's financial statements by a registered auditor, who reports to the members on whether the statements give a true and fair view and are prepared in line with the Companies Act 2014. The audited statements are then attached to the company's annual return and filed with the CRO. It is not the same as a Revenue audit, which checks whether tax returns are correct (see Revenue audit support).

A company can also choose an audit when it does not need one. A company preparing for sale may want one because a buyer will have more confidence in audited figures, and shareholders who are not involved in running the business may want the reassurance that the accounts are accurate.