Audit for an Estonian Company
An audit is the examination of an enterprise’s annual accounting report and its evaluation by a juror. The obligation to be audited arises when companies meet the following indicators. The audit assessment aims to improve the reliability of the Estonian enterprise’s financial reporting in the eyes of clients and investors.
It is also essential to consider an audit obligation in Estonia if the company meets specific financial targets.
In Estonia, the obligation of an audit or audit inspection is established by articles 91 and 92 of the Estonian Auditing Act.
Audit obligation
According to Estonian legislation, an audit/audit inspection of the annual accounting report must be performed in a company that exceeds at least two of the following:
| Condition | Audit | Inspection |
|---|---|---|
| Sales income | More than 4, 000, 000 EUR | More than 1, 600, 000 EUR |
| Company assets | 2, 000, 000 EUR | 800, 000 EUR |
| Number of employees | 50 people | 24 people |
According to the Estonian legislation, an audit/audit inspection of an annual accounting report must be performed by a company that exceeds one of the following:
| Condition | Audit | Inspection |
|---|---|---|
| Sales income | More than 12, 000, 000 EUR | More than 4, 800, 000 EUR |
| Company assets | 6, 000, 000 EUR | 2, 400, 000 EUR |
| Number of employees | 180 people | 72 people |
It is important to note that the audit of the annual accounting report is also mandatory for all Estonian registered joint-stock companies (AS).
Audit organisation
The audit is organised by an independent auditor, who is included in the list of Estonian auditors. There are currently 342 certified auditors in Estonia. The board member appoints the auditor and designates his powers. The appointment of an auditor requires the written consent of the parties. It should be noted that the selected auditor will cover the cost of an audit — often, the value may differ more than fivefold. Considering the activity and financial performance of your company, LKS Consult OÜ specialists will be able to select the most suitable person to prepare the audit report for your company.
When completing an audit, it is necessary to know the following:
- Audit information is confidential
- Audit information is intended for management only
- The auditor guarantees the independence of the evaluation and its objectivity
- The audit is prepared using statistical and economic analysis techniques
- The juror is legally and materially responsible for his opinion.
The completed audit report must be attached to the company’s annual report before being submitted to the Estonian Business Register.
LKS Consult OÜ offers full audit support for your Estonian company. Our services include the following:
- Selection of the most suitable auditor
- Providing necessary information about the company’s activities
- List of requirements for audit
- Assistance in developing an audit plan
- Assistance in answering key audit questions
| Audit for an Estonian company | From 1,000 EUR |
+372 5492 3720