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Answer: The audit exemption will be applicable for a private company’s financial statements with annual periods commencing on or after the dates stated in the Practice Directive 3/2017 for the respective categories of companies. There are three (3) categories of companies, namely dormant companies, zero revenue companies and threshold-qualified companies. The annual periods’ commencement dates for these categories of companies are as follows– (a) Dormant companies incorporated on or after 31 January 2017 – financial periods commencing 31 January 2017 where election not to audit its financial statements will be triggered for financial periods commencing on or after 31 January 2017. (b) Dormant companies incorporated on or before 30 January 2017 – financial periods commencing 1 September 2017 where election not to audit its financial statements will be triggered for financial year ended 31 August 2018; (c) Zero-revenue companies – financial periods commencing 1 January 2018 where election not to audit its financial statements will be triggered for the financial year ended 31 December 2018. (d) Threshold-qualified companies – financial periods commencing 1 July 2018 where election not to audit its financial statements will be triggered for the financial year ended 30 June 2019.