05. Accounts and audit.

Question 1

Section 386 of the Companies Act 2006 rquires that every company keeps … accounting records.

Answer 1

adequate

Question 2

Failure to keep adequate accounting records is punishable by up to …

Answer 2

10 years imprisonment.

Question 3

Accounting records for a public company must be kept for …

Answer 3

6 years

Question 4

Accounting records for a private company must be kept for …

Answer 4

3 years

Question 5

Accounting records for a … company must be kept for 6 years.

Answer 5

public

Question 6

Accounting records for a … company must be kept for 3 years.

Answer 6

private

Question 7

The duty to prepare accounts is that of …

Answer 7

the directors.

s. 394 CA 2006

Question 8

Companies act acounts must give a .. view.

Answer 8

true and fair

Question 9

T/F: all companies must prepare a strategic report alongside their annual accounts.

Answer 9

FALSE

small companies are exempt.

Question 10

A public company must file its accounts and reports with the registrar within …

Answer 10

6 months

Question 11

A private company must file its accounts and reports with the registrar within …

Answer 11

9 months

Question 12

A … company must file its accounts and reports with the registrar within 6 months.

Answer 12

public

Question 13

A … company must file its accounts and reports with the registrar within 9 months.

Answer 13

private

Question 14

In addition to filing its accounts and reports with the registrar, a public company must also …

Answer 14

lay them before members in general meeting, usually the AGM.

Question 15

The main types of company that can NOT benefit from audit exemption despite being ‘small’ are …

Answer 15

banking and insurance companies.

Question 16

An audit of an otherwise otherwise exempt company can be demanded by …

Answer 16

10% of members representing 10% of issued share capital.

Question 17

T/F: all auditors need to be formally re-appointed every year.

Answer 17

FALSE

a private company’s auditors are deemed to be re-appointed.

Question 18

The main audit exemptions: S* D P S

Answer 18

SMALL companies

Question 19

The main audit exemptions: S D* P S

Answer 19

DORMANT companies

Question 20

The main audit exemptions: S D P* S

Answer 20

non-profit-making companies subject to PUBLIC sector audit.

Question 21

The main audit exemptions: S D P S*

Answer 21

SUBSIDIARIES whose parent company guarantees their liabilities outstanding at the balance sheet date.

Question 22

The ‘sizes’ of companies in the present UK regime: M* S M L

Answer 22

micro-entities

Question 23

The ‘sizes’ of companies in the present UK regime: M S* M L

Answer 23

small

Question 24

The ‘sizes’ of companies in the present UK regime: M S M* L

Answer 24

medium-sized

Question 25

The ‘sizes’ of companies in the present UK regime: M S M L*

Answer 25

large

Question 26

T/F: a company is only deemed to have increased size in the second accounting year in which two criteria have changed.

Answer 26

TRUE

Question 27

The ‘sizes’ of companies in the present UK regime.

Answer 27

micro-entities, small, medium-sized, large

Question 28

The audit exemption under s.477 of the Companies Act 2006 applies to …

Answer 28

small companies

Question 29

Small company maxima.

Answer 29

Turnover: £10.2m

Balance sheet: £5.1m

Employees: 50

Question 30

Micro entity maxima.

Answer 30

Turnover: £632,000

Balance sheet: £316,000

Employees: 10

Question 31

Medium-sized maxima.

Answer 31

Turnover: £36m

Balance sheet: £18m

Employees: 250

Question 32

Employees maxima.

Answer 32

10, 50, 250

Question 33

Balance sheet maxima.

Answer 33

£316,000, £5.1m, £18m

Question 34

Turnover maxima.

Answer 34

£632,000, £10.2m, £36m

Question 35

A strategic report is not required for companies that are …

Answer 35

small

Question 36

If the deadline to file limited company accounts falls on a Sunday or Bank Holiday …

Answer 36

the accounts must nevertheless be RECEIVED by Companies House BEFORE that date.

Question 37

T/F: micro-entities are not required to file a copy of their profit and loss account.

Answer 37

TRUE

they must nevertheless prepare one for members.

Question 38

T/F: small companies are not required to file a copy of their profit and loss account.

Answer 38

TRUE

they must nevertheless prepare one for members.

Question 39

T/F: small companies are not required to file a copy of their directors’ report.

Answer 39

TRUE

they must nevertheless prepare one for members.