With the recent changes in the tax law, also the rules concerning the statutory audits of the companies’ financial statements have changed. The new rules apply to the audits of the financial years commencing from 01.01.2016 and onwards.
- Subject to the statutory audit are the financial statements of companies limited by shares, limited liability companies, limited partnerships with share capital, general partnerships and limited partnerships of which all direct or indirect partners have limited liability, since they are either legal persons or have another legal form that is comparable with the legal persons mentioned above, and of the private capital companies, when according to the below mentioned criteria they are classified as medium and large entities.
Also the financial statements of the entities mentioned above independent of their size are audited when these entities are classified as public interest entities the shares or other stock market securities of which are listed on a regulated market in a Member State of the European Union (stock exchanges), the insurance and reinsurance firms and credit institutions.
Finally the above mentioned financial statements of the big groups are audited and of those which are characterized as entities of public interest regardless of their size according to the above.
- According to article 2, paragraph. 5 and 6 of law 4308/2014, medium sized entities are the entities, which at their balance sheet deadline do not exceed the limit of at least at two of the following three criteria : Total assets of € 20.000.000, 00 / net turnover € 40.000.000,00 / Average employees during the period under examination, 250 persons.
Correspondingly, large entities are those, which at their balance sheet closing deadline they exceed the limits of at least two of the above criteria for medium-sized entities. These are:
Total assets € 20.000.000,00 / net turnover € 40.000.000,00 / Average employees during the period under examination, 250 people.
- Until 31.12.2015 the financial statements of the aforementioned entities are statutory audited, if on their balance sheet deadline they exceed the limits of at least two of the following three criteria during the previous two financial years: Total assets of € 2.500.000,00 / net turnover € 5.000.000,00 / average employed 50 persons.
- The audit of the above financial statements is a precondition to the validity of the approval of the annual financial statements by the General Meeting of Shareholders or other competent body of the entity.
- The statutory auditor or audit company is appointed by the ordinary general meeting of shareholders or by the partners’ meeting.
The appointment of the auditor in a later meeting does not affect the validity of the appointment.
- The entity to be audited needs to report to the auditor his appointment in a written form.
The auditor has the right to renounce his appointment within 5 working days from the date of receiving the notification document of his appointment.
- The auditor is obliged to monitor the accounting and management status of the entity and be aware of all of the entity’s records and books during the financial year, for which he received the appointment as auditor of the entity concerned.
He must attend the general meeting of shareholders or the meeting of the entity’s partners, for which he has been appointed as auditor and to inform about the findings of the audit.