Branch audit exemption based on low quantum of activity preserves auditor rights while waiving branch audit requirement. Rule 3 creates a branch audit exemption for manufacturing, processing or trading companies when a branch's average quantum of activity falls below a prescribed lower threshold, removing the section 228 auditing requirement for that branch while preserving the company auditor's subsection (2) rights. The rule specifies that the average quantum of activity is usually calculated over the three financial years prior to the relevant year, with shorter averaging periods where the branch has existed for fewer years, and otherwise by reference to the relevant financial year alone.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Branch audit exemption based on low quantum of activity preserves auditor rights while waiving branch audit requirement.
Rule 3 creates a branch audit exemption for manufacturing, processing or trading companies when a branch's average quantum of activity falls below a prescribed lower threshold, removing the section 228 auditing requirement for that branch while preserving the company auditor's subsection (2) rights. The rule specifies that the average quantum of activity is usually calculated over the three financial years prior to the relevant year, with shorter averaging periods where the branch has existed for fewer years, and otherwise by reference to the relevant financial year alone.
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