The Companies Amending Law 88(I) of 2022 (the “Amending Law”) which was published in the Official Gazette of the Republic of Cyprus on 24/06/2022, introduced certain changes to the Companies Law, in relation to the requirement of audit or review of financial statements of companies.

According to this Amending Law, companies, whose net turnover, on the date of closing their balance sheet, does not exceed the amount of €200,000 and the total value of the assets without deducting liabilities does not exceed the amount of €500,000, may elect to have their financial statements reviewed instead of audited.  Such companies may submit to the Authorities their reviewed instead of the audited financial statements, effected by a statutory auditor or statutory audit firm, according the International Standard on Review Engagements (ISRE) 2400, “Engagements to Review Financial Statements”. 

It is important to note that the Amending Law includes particular exceptions, i.e. for companies that are subject to regulation and supervision by certain independent authorities, for parent companies that are required to prepare consolidated financial statements, for subsidiaries whose parent company must prepare consolidated financial statements, etc.

The above is applicable as from 1/01/2023 and the provisions apply to the financial statements of companies ending 31/12/2022 or any other subsequent date.