Running an Audit in CyprusUpdated on Tuesday 22nd September 2015
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Audit requirements for Cypriot companies
The Cypriot Commercial Law establishes companies conducting business activities within the country are required to have their financial accounts audited. The directors of the companies are required to keep the accounting books of the company and prepare the financial statements in accordance with the International Accounting Standards regulations. These accounts must be audited by accredited accountants. However, Cypriot private small companies are not required to have their financial statements audited. The Companies Law also establishes that certain companies earning below certain thresholds are not required to have their balance sheets audited.
For information about audit requirements and exemptions you may ask our lawyers in Cyprus.
Audited accounts in Cyprus
The audited annual financial statements must be submitted with the Cypriot Registrar of Companies in order to explain a company’s transactions. The financial statements must be drafted according to the International Financial Reporting Standards (IFRS) and must be submitted in Greek or in Turkish. Based in the financial statements, the Cypriot company must also prepare its annual tax returns. It is also very important to keep in mind that all financial documents must be submitted with the auditors within a reasonable amount of time in order to meet the filing deadlines. In case of newly registered companies the first financial statements and tax returns must be filed within 18 months from incorporation. Other Cypriot companies are required to file the audited accounting documents by the 31st of December of the following year.
Financial documents to be audited in Cyprus
In order to perform a correct audit, Cypriot companies are required to disclose a set of information and financial documents every year. These are:
- - all the bank statements and credit or debit notes,
- - the contracts signed by the Cypriot company,
- - the issued or received invoices,
- - information about the subsidiaries held by the Cypriot company, if applicable,
- - the audited financial statements of the subsidiaries,
- - the dividends the company received,
- - information about the operations and expenses of branch or representative offices,
- - titles of property,
- - documents supporting payments of taxes outside Cyprus.
For complete information about audit requirements according to the Commercial Law, please contact our Cypriot lawyers.