Below are presented some of the key changes.
- Chartered Accounting Experts will be named Statutory/Legal Auditors.
- The scope of the law has been extended by recognizing as ‘statutory/mandatory audits’ not only the ones according to this law, but also:
- the audits required from other laws,
- those performed willingly at the request of a company’s partners/shareholders, or
- of any interested third party, when such audits apply the same standards and requirements specified by this law.
- New criteria for the eligibility of limited liability companies’ obligation to become subject of a statutory/mandatory audit are set forth. Limited liability companies applying the National Accounting Standards must be subject of statutory audit when, at the end of the accounting period, for two consecutive years, exceed 2 out of 3 of the following indicators:
- The total of assets in the statement of financial position, in closing of the relevant accounting period, equals or exceeds the amount of ALL 50 million;
- The income from the economic activity (turnover) in the accounting period equals or exceeds the amount of ALL 100 million;
- The company has an average of 30 employees during the accounting period.
This rule will be applicable starting from the year 2016.
- When the audit company performs a statutory/mandatory audit, the audit report should be signed and dated, at least, from one of the statutory auditors that carry out the statutory audit on behalf of the audit company.
- Administrative measures and sanctions for statutory auditors will be as follows:
- Written remark accompanied by a note in the public register;
- Penalties (to be paid within two months and which vary from ALL 50,000 to 500,000);
- Temporary suspension, for a period not more than 5 years;
- Permanent cancelation from public register.
- The right of statutory auditors to appeal in the relevant administrative court against the decisions of the Public Supervision Board is set to be within 45 days from the date of notification.
