447. Requirement for audited accounts and public interest entities and financial institutions

(1) A company's annual accounts for a financial year must be audited in accordance with this Part unless the company is exempt from audit under—

section 449 (small companies),

section 452 (subsidiary companies),

or section 455 (dormant companies).
(2) A company is not entitled to any such exemption unless its balance sheet contains a statement by the directors to that effect.
(3) A company is not entitled to exemption under any of the provisions mentioned in subsection (1) unless its balance sheet contains a statement by the directors to the effect that—
(a) the members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 448 (right of members to require audit), and
(b) the directors acknowledge their responsibilities for complying with the requirements of these Regulations with respect to accounting records and the preparation of accounts.
(4) The statement required by subsection (2) or (3) must appear on the balance sheet above the signature required by section 399 (approval and signing of accounts).
(5) In this Part, "public interest entity" and "financial institution" shall have the meaning given to them in section 372 (public interest entities and financial institutions).
(6) This Part does not apply to restricted scope companies who shall be exempt from audit for the purposes of these Regulations.