What are the UK audit exemption thresholds?

For periods beginning on or after 6 April 2025, a company qualifies as small if it meets at least two of three tests: turnover of no more than GBP 15 million, balance sheet total of no more than GBP 7.5 million, and no more than 50 employees on average. Small companies are generally exempt from statutory audit.

Is there an audit threshold in Canada?

Not a size threshold in the same sense. Reporting issuers must be audited under securities law. A non-distributing corporation can dispense with an auditor by unanimous shareholder resolution, renewed annually, so the decision turns on shareholder consent and on contractual requirements rather than on turnover.

How is the South African requirement decided?

By the public interest score calculated at each financial year end under Regulation 26. A score of 350 or more requires an audit. Between 100 and 349 an audit is required if the financial statements were internally compiled, and an independent review is permitted if they were independently compiled. Below 100 an independent review applies unless the company is owner-managed.

Can a lender require an audit when the law does not?

Yes, and it is the most common reason exempt companies are audited. Banking covenants, grant conditions and shareholder agreements frequently specify audited financial statements. The agreement governs, so read the clause before assuming the size test decides it.

Audit thresholds in three jurisdictions

The UK, Canada and South Africa each decide who needs an audit in a completely different way. Here they are side by side, with the calculators to work out where you sit.

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Reviewed 18 August 2026. We update this page when the rules change.

United Kingdom

Decided by company size. For periods beginning on or after 6 April 2025, a company is small if it meets at least two of the three tests below, and small companies are generally exempt.

Test	From 6 April 2025	Previously
Turnover	Not more than GBP 15 million	GBP 10.2 million
Balance sheet total	Not more than GBP 7.5 million	GBP 5.1 million
Employees	Not more than 50 on average	50

Exemption is lost regardless of size for public companies, many FCA-regulated firms, members of an ineligible group, and where members holding 10% of the shares demand an audit. Medium-sized limits are GBP 54 million, GBP 27 million and 250 employees.

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Canada

There is no turnover threshold. The question is whether the corporation is a reporting issuer, and if not, whether every shareholder agrees to go without an auditor.

Situation	Requirement
Reporting issuer, including TSX and TSX-V	Audit required under securities law. No proportionality argument available.
Non-distributing corporation, unanimous consent	May dispense with an auditor by unanimous shareholder resolution, renewed each year. One dissenting holder ends it.
No unanimous consent	An auditor must be appointed.
Assurance wanted but audit not required	Review engagement under CSRE 2400, giving limited assurance.

In practice the binding constraint is usually a lending covenant rather than the statute. Credit agreements normally specify the level of assurance, and larger facilities generally require an audit.

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South Africa

Decided by the public interest score, calculated at each financial year end under Regulation 26 of the Companies Act 71 of 2008. It combines four things, not turnover alone.

Score	Requirement
350 or more	Audit required. Financial statements must also be filed with the CIPC in XBRL format.
100 to 349, internally compiled	Audit required.
100 to 349, independently compiled	Independent review under ISRE 2400, performed by a registered auditor or a member of an accredited professional body.
Below 100	Independent review, unless owner-managed.
Owner-managed, every shareholder a director	Generally exempt from both, unless the memorandum of incorporation says otherwise.

The score is one point per employee on average, one per R1 million or part thereof of turnover, one per R1 million or part thereof of third party liabilities, and one per individual holding a beneficial interest in the securities. At 500 or more in any two of the previous five years, a social and ethics committee is also required.

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Common questions

What are the UK audit exemption thresholds?: For periods beginning on or after 6 April 2025, a company qualifies as small if it meets at least two of three tests: turnover of no more than GBP 15 million, balance sheet total of no more than GBP 7.5 million, and no more than 50 employees on average. Small companies are generally exempt from statutory audit.
Is there an audit threshold in Canada?: Not a size threshold in the same sense. Reporting issuers must be audited under securities law. A non-distributing corporation can dispense with an auditor by unanimous shareholder resolution, renewed annually, so the decision turns on shareholder consent and on contractual requirements rather than on turnover.
How is the South African requirement decided?: By the public interest score calculated at each financial year end under Regulation 26. A score of 350 or more requires an audit. Between 100 and 349 an audit is required if the financial statements were internally compiled, and an independent review is permitted if they were independently compiled. Below 100 an independent review applies unless the company is owner-managed.
Can a lender require an audit when the law does not?: Yes, and it is the most common reason exempt companies are audited. Banking covenants, grant conditions and shareholder agreements frequently specify audited financial statements. The agreement governs, so read the clause before assuming the size test decides it.

General guidance based on the rules in force at the date above. It is not a formal determination, and group structures, your constitution and contractual requirements can all change the answer.

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