(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 -
(a) the members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476, and
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