On 9th June 2022 the House of Representatives passed an amendment to the Cyprus Companies Law, Cap. 113, aiming to ease financial reporting obligations for small and medium-sized private limited liability companies, with a purpose of reducing the administrative burden and giving the opportunity to companies, partnerships and self-employed persons that fall within the specified criteria to use an alternative assurance framework.*
Changes in the Companies’ Law, Cap. 113 enable companies in Cyprus that meet the specified criteria to proceed with a review of their financial statements, as opposed to a full audit. If a company still wishes to perform a statutory audit of their financial statements, regardless of whether it could choose the review option, it can continue to do so.
Determining the criteria for using a review engagement instead of an audit
To determine whether a Company may apply a review engagement instead of a statutory audit:
It is applicable for the financial statements for the year ending 31st December 2022 and thereafter.
For more information on the Amendments to audit obligations of Cyprus companies and how this may affect your business, please contact us on [email protected]
*International Standard on Review Engagements (ISRE) 2400 (Revised) Engagements to Review Historical Financial Statements as issued by the International Auditing and Assurance Standards Board (IAASB).