Conditions under which an Audit Report is not required
All Conditions Must Be Met
- A company seeking Audit Exemption must satisfy all required conditions
- Meeting only one or some of the conditions is not sufficient
Condition 1: All Shareholders Must Be Natural Persons
- All shareholders must be Natural Persons
- Shareholders cannot be Legal Persons
- For example, companies, associations, or other entities cannot be shareholders
Condition 2: The Company Must Be Profitable
- The company must have a profitable financial position
- It must not be operating at a loss
Condition 3: Assets Must Exceed Liabilities
- The company's total assets must be greater than its total liabilities
- The company should have a healthy financial position and the ability to meet its obligations
Summary
- Audit Exemption is not granted automatically
- All prescribed conditions must be fulfilled simultaneously
- If the requirements are not fully met, the company will still be required to submit an Audit Report