Securing an auditor in Estonia is a challenging task. Even if you manage to find one willing to take on the work, the high demand often means they are overwhelmed with other clients and assignments, leading to audits taking several months to complete.
Recent data reveals a significant rise in the number of Estonian companies requiring audits. Just a few years ago, the cost of an audit for a small company was approximately €2,500. Today, for actively trading companies, that cost has tripled.
New Rules for Audit Thresholds
The recent change in the thresholds for audits and reviews, which will already apply to the annual report being prepared for the year 2024 is excellent news for business owners in Estonia.
The thresholds have been increased by 25% compared to the previous limits, and the new thresholds will apply to the annual reports prepared for the year 2024. Companies that meet the criteria for mandatory reviews or audits should already begin selecting an auditor, as the current supply of auditors in Estonia is smaller than the demand.
According to the Auditing Act, specific thresholds are set, exceeding which it becomes mandatory for a company to have its annual financial report audited or reviewed. Please be aware that both a review and an audit must be conducted by a certified auditor.
Review Obligation
A review is mandatory for a company if at least two of the following criteria from the financial year reported in the annual report are exceeded:
- Revenue or income: €2,000,000
- Total assets as of the balance sheet date: €1,000,000
- Average number of employees during the financial year: 24 people.
In addition, a review is mandatory if any one of the following thresholds is exceeded:
- Revenue or income: €6,000,000
- Total assets as of the balance sheet date: €3,000,000
- Average number of employees during the financial year: 72 people.
Audit Obligation
An audit is mandatory for a company if at least two of the following thresholds from the financial year are exceeded:
- Revenue or income: €5,000,000
- Total assets as of the balance sheet date: €2,500,000
- Average number of employees during the financial year: 60 people
An audit is also required if at least one of the following thresholds is exceeded:
- Revenue or income: €15,000,000
- Total assets as of the balance sheet date: €7,500,000
- Average number of employees during the financial year: 180 people
Need an audit? We can help!
InCorpora’s core business activity is the formation, management, and day-to-day administration of Estonian companies. This includes:
- company administration;
- international tax planning advice;
- accounting;
- book-keeping;
- secretarial services;
- and audit support.
We’ve acquired and developed in-depth knowledge and experience over many years through assisting hundreds of resident and non-resident clients with their accounting and tax planning needs.
We specialize in optimizing your experience in Estonia and can identify the right auditor to suit your company’s unique needs and requirements.
If you need audit support, get in touch with our team of specialists today.
