Section 402 Exemption from audit requirement

What this section means

From the guide: Is my company exempt from audit under CAMA 2020?

• A company is exempt from audit for a financial year if it has not carried on any business since incorporation, or if it is a small company (section 402(1)).
• The exemption is not available to a company that was at any time in the year an insurance company, a bank or another company the Commission prescribes (section 402(2)).
• Section 402(1) exempts a company from the audit requirements for a financial year if either of these applies:
• A company cannot use the exemption if, at any time in the year, it was an insurance company, a bank or any other company the Commission prescribes (section 402(2)).