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UK statutory audit for subsidiaries of overseas groups

Whether the UK company needs an audit depends on the size of the whole group worldwide — not the UK company. A tiny subsidiary of a large group needs one. We establish the position early, prepare the file, and work with an independent registered auditor.

Quotedaudit by an independent registered auditor · audit-readiness from £900

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A UK company is exempt from audit if it is small: two of turnover £15m, balance sheet £7.5m and 50 employees. But a subsidiary loses the exemption if the group it belongs to — measured worldwide — is not small on the same test, unless the parent gives a statutory guarantee of the subsidiary’s liabilities under section 479A, which most overseas parents will not. Subsidiaries of listed or regulated groups need an audit regardless.

Audit is reserved to registered auditors. We are not one, and we say so plainly. What we do is decide whether you need one before the year end (the auditor must be appointed before the year end for the first year), prepare accounts and a working-paper file the auditor can rely on, answer the audit queries, and manage the process so your group auditor gets what it needs for the consolidation.

What’s included

Audit exemption assessment against group-wide thresholds
Section 479A parent guarantee route reviewed
Introduction to an independent registered auditor
Audit-ready accounts and working papers
Audit queries handled on your behalf
Group audit instructions and reporting pack coordinated

How it works

What happens, in order

Establish

Group size measured; exemption or audit requirement confirmed in writing before the year end.

Prepare

Statutory accounts and a full working-paper file prepared.

Support

Auditor fieldwork supported, queries answered, signed accounts filed.

When you need this

Who this is for

Every subsidiary of a group with more than 50 employees or £15m turnover worldwide — which is most subsidiaries of established companies.

Common questions

Does our small UK subsidiary need an audit?

If the worldwide group exceeds two of £15m turnover, £7.5m balance sheet and 50 employees, yes — however small the UK company is — unless the parent gives a section 479A guarantee.

Can you audit our accounts?

No. Audit is reserved to registered auditors and we are not one. We prepare the accounts and file and coordinate an independent auditor.

When must the auditor be appointed?

Before the end of the first financial year that requires an audit. Leaving it until the accounts are due is the most common mistake.

What does a UK audit cost?

For a small subsidiary with clean records, typically £6,000–£15,000 from a mid-sized firm. Audit-readiness work on our side is from £900.