Assurance review – limited work

On 9 June 2022, the House of Representatives approved amendments to the Companies Law and to the Assessment and Collection of taxes law in order to simplify the procedure of auditing the Financial Statements of small and medium-sized enterprises.

Enterprises that satisfy the below thresholds will be allowed to submit their Financial Statements to a limited assurance review as opposed to a full audit carried out by an authorised auditor.

• Companies with net turnover of €200.000 or less and total assets €500.000 or less, for at least two consecutive years. The amendment enters into force on 1 January 2023 and its provisions apply to the Financial Statements of companies ending on 31 December 2022 or any other later date.
• Individuals with turnover and any other income exceeding €70.000 but not over €200.000, and with total assets not exceeding €500.000 for at least two consecutive years.
• Individuals with turnover less than €70.000 there is no obligation to prepare Financial Statements.

The above amendments do not apply to parent companies which are required to prepare consolidated Financial Statements and companies which are regulated and supervised by the Central Bank of Cyprus, the Cyprus Securities and Exchange Commission and the Commissioner of Insurance, as well as companies which acquire or hold a qualifying participation in such companies.