Recent update to the Companies Law aiming at simplifying audit practices for small size enterprises.
On the 9th of June 2022, a significant update to the Companies Law, CAP. 113, has been passed by the House of Representatives in respect to companies’ submission of financial statements for review instead of audit. Specifically, when the net turnover of a company does not surpass the amount of €200,000 and the total value of assets does not exceed the amount of €500,000 then companies are able to submit their financial statements for review instead of audit by a statutory auditor or statutory audit firm, according the International Standard on Review Engagements (ISRE) 2400.
The above amendment will be applicable as of the 1st January 2023. It is essential to emphasize that the Law includes certain exemptions, for instance, for companies that are subject to regulation and supervision by certain independent authorities, for parent companies that are obliged to prepare consolidated financial statements, for subsidiaries whose parent company must prepare consolidated financial statements, and others.