ORC Waives Financial Statement Audit Requirement for Small Businesses

The Office of the Registrar of Companies (ORC), has waived the requirement for small businesses to have their financial statements audited by an auditor in accordance with Section 137 of the Companies Act, 2019 (Act 992).

In accordance with the same Section 137 of the Companies Act, the requirement for small businesses to ensure the publication of an auditor’s report has also been waived by the ORC.

According to the ORC in a press statement dated January 22, 2025, in place of the financial statement audit and report publication by an auditor, small businesses will rather be subjected to a review by the company’s auditors in accordance with international standards on review engagements and any other standards issued by the International Audit and Assurance Standards Board applicable to the audit of less complex entities adopted by the Institute of Chartered Accountants Ghana (ICAG).

“A report of auditors required under Section 137 of the Companies Act in respect of a company classified as a small company shall only contain a brief report on the financial statement of the company prepared by the internal auditor of the company,” the ORC added.

Per the ORC, businesses with turnover and assets within the interval of GHS 0 to GHS 400,000 are classified as small businesses.

The ORC per Section 353 of the Companies Act, 2019 is established to register and regulate all types of businesses in conformity with the Act and other relevant enactments.

Source: norvanreports.com