ORC waives financial statement audit for small businesses

The Office of the Registrar of Companies (ORC) has announced an exemption for small businesses from the financial statement audit mandate outlined in Section 137 of the Companies Act, 2019 (Act 992).

This waiver also includes relief from the obligation to publish an auditor’s report – a requirement stipulated under the same section of the Act.

According to a press statement issued by the ORC, small businesses will instead undergo a financial review conducted by the auditors of their companies

The review will align with international standards on review engagements and guidelines issued by the International Audit and Assurance Standards Board (IAASB), as adopted by the Institute of Chartered Accountants Ghana (ICAG).

The ORC clarified: “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.”

The ORC categorizes small businesses as companies with annual turnover and assets ranging from GHS 0 to GHS 400,000.

Established under Section 353 of the Companies Act, 2019, the ORC is tasked with registering and regulating businesses in accordance with the Act and other applicable laws.

This new measure is expected to alleviate the financial and administrative burdens of compliance for small businesses, fostering growth and sustainability in Ghana’s micro and small business sector.