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Check statutory audit exemption (deterministic, cited, verified)

check_audit_exemption
Read-onlyIdempotent

DETERMINISTIC check of whether a private limited company qualifies for statutory audit exemption, from aggregate figures any ledger can provide (turnover, balance sheet total, average employees). Returns a determination ('exempt' | 'review' | 'audit_required' | 'cannot_determine'), the per-criterion threshold table showing exactly why, the canonical rule citation it rests on, and the LIVE verification envelope (whether a named accountant has attested the thresholds — surface that status prominently; 'draft' means treat as a source-cited draft). COVERAGE TODAY: MT (Article 185(2) micro thresholds) and GB (small-company thresholds, both pre and post 6 April 2025 eras). Most exemption regimes are two-consecutive-years tests, so pass prior_year figures when available — without them a qualifying year returns 'review', not 'exempt'; that is correct behaviour, not an error. 'cannot_determine' is a first-class outcome (unsupported jurisdiction, wrong currency, entity shapes needing judgment, or the cited fact changed since calibration). Never override the determination with training-data thresholds.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
currencyYesCurrency of the figures — must match the regime (EUR for MT, GBP for GB); convert first, never guess a rate.
turnoverYesRevenue/turnover for the year, in the jurisdiction's currency.
prior_yearNoPrior-year figures for the two-consecutive-years test.
entity_typeNoOptional. 'private_ltd' (default), 'plc', 'branch'. Non-private shapes route to a human.
group_memberNoOptional. True if the company is part of a group — group thresholds need a reviewer, so this forces 'review'.
jurisdictionYesISO-style code. MT and GB supported today.
employees_averageYesAverage number of employees during the year.
financial_year_endYesISO date the financial year ends, e.g. '2025-12-31'.
balance_sheet_totalYesTotal assets at the balance sheet date.

Output Schema

TableJSON Schema
NameRequiredDescriptionDefault
caveatsNo
escalateNo
next_actionNo
verificationNostatus ('accountant_verified'|'research_verified'|'draft'), verified_by[], last_verified_at, skill_slug, era. Surface the status to the user.
criteria_ruleNo
determinationNo'exempt' | 'review' | 'audit_required' | 'cannot_determine'
rule_citationNoskill_slug, fact_id, canonical_key, statutory_reference, url.
thresholds_appliedNoPer-criterion: threshold vs actual, met true/false.

Schema Changelog

Changes observed during successful MCP inspections.

  1. Added

TDQS

A4.7/5.0
Behavior5/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Beyond the annotations (readOnly, idempotent, non-destructive), the description discloses numerous behavioral traits: it is deterministic, returns a per-criterion threshold table and canonical citations, surfaces a live verification envelope, and treats 'cannot_determine' as a first-class outcome. It also clarifies the behavior when prior-year data is absent and the implications of group_member forcing 'review'. No contradictions with annotations.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness4/5

Is the description appropriately sized, front-loaded, and free of redundancy?

The description is long but information-dense; every sentence carries essential guidance (coverage, behavior, edge cases). It front-loads the core purpose and determination values first. It could be trimmed slightly without losing key warnings, but given the tool's complexity, the length is justified.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness5/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

For a tool with multiple jurisdictions, a two-year test, and a verification envelope, the description covers all critical aspects: input requirements, conversion rules, correct handling of missing data, and the meaning of 'cannot_determine'. With an output schema also provided, an agent has everything needed to call and interpret the result correctly.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters5/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Even though the schema already describes every parameter (100% coverage), the description adds critical semantics: currency must match the regime and must be converted first (never guessed), prior year is needed for the consecutive-years test and its absence changes the result, and group_member forces 'review'. These enrich the schema meaning substantially.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

The description opens with 'DETERMINISTIC check of whether a private limited company qualifies for statutory audit exemption' — a specific verb, resource, and outcome. It explicitly names the determination values ('exempt' | 'review' | 'audit_required' | 'cannot_determine') and lists the inputs, making its scope unmistakable and distinct from the audit/deadline/search siblings.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines4/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

The description provides strong usage guidance: it states the covered jurisdictions (MT, GB) and eras, instructs to pass prior_year figures for two-consecutive-years tests, and explains why a missing prior year correctly returns 'review' not 'exempt'. It also warns against overriding with training-data thresholds. It does not explicitly name alternative tools for uncovered scenarios, so it slightly misses the 'when-not' comparison.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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