Companies Act 1993

If you need more information about this Act, please contact the administering agency: Ministry of Business, Innovation, and Employment

Audit of financial statements

Heading: inserted, on 1 April 2014, by section 30 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

206 Application of audit requirement

(1)

Section 207 applies to—

(a)

every large company unless subsection (2) applies; and

(b)

every company that is a public entity; and

(c)

every large overseas company unless subsection (3) applies; and

(d)

every company with 10 or more shareholders unless the company has opted out of compliance with that section in accordance with section 207I; and

(e)

every company with fewer than 10 shareholders if the company has opted into compliance with the section in accordance with section 207K.

(2)

Subsection (1)(a) does not apply to a large company (A) if A has opted out of compliance with section 207 in accordance with section 207J.

(3)

Subsection (1)(c) does not apply to a large overseas company (B) in relation to a balance date if—

(a)

financial statements or group financial statements are prepared in respect of B under section 201 or 202 in relation to the balance date; and

(b)

section 204 does not apply to B in relation to the balance date; and

(c)

under the law in force in the country where B is incorporated or constituted,—

(i)

qualifying financial statements are required to be prepared in respect of B in relation to the balance date; but

(ii)

the qualifying financial statements so prepared are not required to be audited.

(4)

In subsection (3)(c), qualifying financial statements means financial statements that are equivalent, or substantially equivalent, to the financial statements or group financial statements referred to in subsection (3)(a).

Section 206: replaced, on 1 April 2014, by section 30 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

Section 206(1)(c): replaced, on 30 May 2017, by section 23(1) of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).

Section 206(2): replaced, on 30 May 2017, by section 23(2) of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).

Section 206(3): inserted, on 30 May 2017, by section 23(3) of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).

Section 206(4): inserted, on 30 May 2017, by section 23(3) of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).