Do micro-entity accounts need an audit?

By Ben Davies · Updated 1 June 2026

No. By definition, a company small enough to be a micro-entity qualifies for audit exemption under section 477 of the Companies Act 2006, so FRS 105 micro-entity accounts are not audited.

The accounts themselves carry two short statements that make this explicit:

• That the members have not required the company to obtain an audit for the year (section 476), and
• That the directors acknowledge their responsibilities for complying with the Companies Act's requirements on accounting records and the preparation of accounts.

There are a few exceptions — for example if shareholders holding at least 10% of the shares formally request an audit, or if the company is in an excluded sector such as banking or insurance (which can't be micro-entities anyway). For an ordinary non-trading company repaying a loan, none of these apply.

This is one of the reasons micro-entity accounts are cheap to file: there is no auditor to pay. DormantFile files them directly to Companies House from a few figures — see how it works.