Certain companies (eg small companies and micro-entities) do not need to have an audit - but only if they’re eligible and want to take advantage of this exemption. A company may qualify for an audit exemption if at least two of the following apply:
an annual turnover of no more than £10.2 million
assets worth no more than £5.1 million
50 or fewer employees on average
However, these regulations do not remove the requirement for the keeping of business records in permanent form within a proper and organised accounting system for a period of years and you will still need to do this. However, where a company is relying on an audit exemption, it must include an audit exemption statement on the balance sheet of its accounts.
Note, that even if a company is usually exempt from an audit, accounts must be audited if shareholders who own at least 10% of shares (by number or value) ask for this. Such a request must be made in writing, at least one month before the end of the financial year the audit relates to, and sent to the company’s registered office address.
You can find out more information about auditing, accounting and reporting requirements on the government’s website.