Review the financial statements of some companies instead of an audit in Cyprus

Review the financial statements of some companies instead of an audit in Cyprus

The House of Representatives voted on June 9, 2022 for the following amendment to the Companies Act:

“Verification instead of audit of financial statements for companies whose net turnover does not exceed 200,000 euros and the total value of assets does not exceed the amount of 500,000 euros.”

Under this amendment to the Companies Act, companies should be able to present their financial statements for review in lieu of an audit by an external auditor or audit firm, as specified in the International Standard on Review Engagements. The conditions are that the net turnover of the company is calculated below the amount of 200.00 euros, and the total value of assets without deducting liabilities does not exceed the amount of 500.00 euros.

It should also be noted that the aforementioned amendment contains exceptions to the rules. The exceptions apply to companies that are regulated or controlled by independent bodies, parent companies that must comply with the requirements for the preparation of consolidated financial statements, as well as their subsidiaries and others.

The amendment is effective from 1 January 2023 and the provisions apply to financial statements of companies ending on 31 December 2022 or any subsequent date.

The publication of the Law in the Official Gazette of the Republic is expected to provide more details on usage as well as exceptions to the recent amendment.

Please note that this article is for informational purposes only. For further advice, please contact us at the contacts listed on the site.