When is a UK company exempt from a statutory audit?

A company qualifies for the small company audit exemption when it meets two of three conditions: turnover not more than £10.2 million, balance sheet total not more than £5.1 million and not more than 50 employees. The exemption does not apply to public companies, to regulated entities such as banks and insurers, or where members holding at least 10 per cent of the shares require an audit. A directors' statement claiming the exemption must appear on the balance sheet.