The Office of the Registrar of Companies (ORC) has announced a waiver for small businesses regarding the requirement to have their financial statements audited by an external auditor.
This waiver includes relief from the obligation to publish an auditor’s report, a requirement stipulated in Section 137 of the Companies Act, 2019 (Act 992).
In a news statement issued by the ORC, it said, that instead of a full audit, small businesses will now undergo a review by the company’s internal auditors, adhering to international standards on review engagements and other relevant standards adopted by the Institute of Chartered Accountants Ghana (ICAG).
It said 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 resulting report will be a concise assessment of the company’s financial statements prepared by the internal auditor,” it added.
This initiative aims to alleviate the compliance burden on small enterprises while maintaining financial transparency and accountability.
The ORC categorizes small businesses as companies with annual turnover and assets ranging from GH¢0 to GH¢400,000.
