The Companies Amending Law 88/1 of 2022 announces the review instead of audit of financial statements for some companies

On 24.06.2022 the Official Gazette of Cyprus has published the introduction of amendments to the Companies Law regarding the requirement of audit or review financial statements of the companies by virtue of the Companies Amending Law 88/1 of 2022. 

The aim of such changes is to simplify the process of auditing financial statements of small and medium-size companies. 

The Law will apply to the companies, whose net turnover and the total balance sheet do not exceed the established limits of 200.000 € and 500.000 € for at least two consecutive years. 

Therefore, if the company satisfies the criteria, it may elect to have their financial statements reviewed instead of audited, as per the Auditors Law of 2017. 

However, parent companies that are obligated to produce the financial statements and the companies which are regulated by the Central Bank of Cyprus, the CySec (the Cyprus Securities and Exchange Commission) are not covered by new amendments as well as the entities who have a qualifying holding in the above – mentioned institutions.