Which of the following is NOT considered an exempt company from audit?

In the context of company audits, certain classifications of companies are exempt from mandatory audits based on their size and financial metrics. The correct answer identifies a company that does not qualify for this exemption.

Micro companies with a turnover of less than £1 million, dormant companies, and small companies with a turnover less than £15 million are generally recognized as exempt from an audit due to their size and relatively straightforward operations. These categories are designed to lessen the regulatory burden on smaller entities that may not have the same complexity or public interest as larger companies.

In contrast, companies with a balance sheet total greater than £500,000 do not automatically qualify for audit exemption. This balance sheet threshold often implies a larger scope of operations and a higher level of public accountability, therefore necessitating an audit to ensure financial accuracy and compliance.

By understanding these distinctions, it becomes clear why a company with a balance sheet total exceeding £500,000 does not fit the criteria for audit exemption the way the others do, making it the right choice in this context.