AUDIT SERVICES
The audit, as defined in the Audit Law, represents independent examination of financial statements or consolidated statements and financial information, in order to express an opinion on their fairness and objectivity and the accordance with the ruling accounting framework.
Who can perform the audit?
According to the Audit Law, the audit can be performed by a company registered for audit or by a certified auditor – sole proprietor under conditions established by the Law and the Law on Trade Companies.
In order to perform the audit, each company registered for audit or certified auditor – sole proprietor must have a working license issued by the Council for Advancement and Oversight of the Audit of Republic of Macedonia (AOARM) as it is prescribed by the latest Audit Law. The lists of companies in Republic of Macedonia which hold such working license are published on the web site of the Advancement and Oversight of the Audit of Republic of Macedonia (AOARM).
Which companies are obliged to issue audited financial statements?
According to Article 478 of the Law on Trade Companies (LTC) the following companies are obliged to issue audited financial statements:
• Large and middle size companies established as joint stock companies;
• Listed companies and
• Large and middle size companies established as companies with limited liability
Middle size companies are companies that during their last two accounting periods, or in their first period of operation have fulfilled at least two out of three following criteria:
• The average number of employees based on the working hours parameter is up to 250 workers;
• Annual revenues are larger than 2.000.000,00 Euro but not larger than 10.000.000,00 Euro, MKD equivalent;
• Average value (at the begging and at the end of the period) of the total assets is larger than 2.000.000,00 Euro but not larger than 11.000,000,00 Euro, MKD equivalent.
Large companies are companies that are not classified as micro, small or middle size companies, or companies with criteria above those for middle size companies.
The audit of the financial statements must be performed not later than one month prior to the annual shareholders assembly meeting.
All the companies obliged to issue audited financial statements according to LTC, not later than 30 days after their approval and not later than June 30, should deliver their financial statements together with the Auditors` report to the Central registry of Republic of Macedonia. If this is not respected there are penalties such as money penalties for the company and the responsible person, as well as some measures like prohibition of all activities of the company from three months up to one year.
Please contact us to learn more about our audit services and how it can benefit you.
