08.11.2017

The changes of the Auditors Activities Act which entered into force on 01.09.2017 have abolished the audit obligation for small public limited companies which have one or two shareholders. Subsection 91(3) of the Auditors Activities Act establishes that the audit of the annual accounts is compulsory for all public limited companies which have more than two shareholders. However, this has raised some questions as the law does not determine a specific period during which the amount of shareholders is to be counted.

The Board of Auditors has received a relevant justified answer from the Economic Affairs Committee of the Riigikogu which explains that this exemption applies to public limited companies which have not had more than two shareholders during the whole auditable period (reporting year).

This change in the requirement related to enterprise form does not exempt the public limited companies from the audit or review obligation on other grounds.   

The thresholds and criteria for mandatory audit and review are available HERE