Audit is the assessment of your financial affairs including local tax obligations towards the authorities.

All Cyprus companies require an audit.

Typically audit services are part of the accountants services done in the end of the financial year when the year end accounting entries are fully booked and reconciled.

In other words, the accountant will be processing all accounting information on a monthly or quarterly basis, will be preparing your monthly payroll records and corresponding payments, will be preparing your VAT returns every 3 months and the last part of their work will be to "close your books" via the performance of an audit.

And before you ask me, yes. The accountant can also perform the audit.
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​How?

​​If the audit firm is licensed to perform audit engagements by the local regulator, ICAPC, then the same firm can also perform the routine accounting work for you and the year end audit as long as separate audit teams are involved and the firm has established "chinese walls" between the accounting and audit department. 

A statutory audit is the creation of the financial statements, the validation of the accounting numbers produced by the accountant and the inclusion of disclosures / notes in accordance with the IFRSs (the International Financial Reporting Standards) together with the auditors opinion where the regulated audit and assurance firm validates whether or not the financial statements show a true and fair view by expressing an opinion also called the "audit opinion".


​​Is an audit good for my business?

A statutory audit is extremely important for you r busbies as the auditors will identify issues, deficiencies in the internal control systems and will also validate your accountant and the financial position and performance of your firm.

In other words, an audit is extremely important as an independent, regulated, third party will check all the financial affairs of your business including local obligations towards VAT and local Tax Department and will assure you whether there are any important issues you should be aware of!​​​​​​