(1) A company's annual accounts for a financial year must be audited in accordance with this Part unless the company -

(a) is exempt from audit under -

section 477 (small companies), or

section 479A (subsidiary companies),

section 480 (dormant companies);

or

(b) is exempt from the requirements of this Part under section 482 (non-profit-making companies subject to public sector audit).

(2) A company is not entitled to any such exemption unless its balance sheet contains a statement by the directors -

(a) identifying the exemption in question, and

(b) confirming that the company qualifies for the exemption.

(3) A company is not entitled to exemption under any of the provisions mentioned in subsection (1)(a) unless its balance sheet contains a statement by the directors to the effect that -