There are several smaller changes but a general direction is towards Environment, Sustainability and Governance (ESG) audits and writing in law how it should be handled and who is obligated to report such section in their annual reports. This means now auditors are also divided into two main sections: financial auditors and environmental auditors.
Most importantly for our clients and in our area of business, there will be changes to the limits from which an annual report is required to be audited or to be audit reviewed.
Overall, all of the audit limit indicators (excl. amount of employees) will be 20% higher than before.
A statutory full audit for annual report is mandatory for companies who meet the following criteria on the balance date:
A statutory audit review for annual report is mandatory for companies who meet the following criteria on the balance date:
The full valid law regulating annual report audit in Estonia can be found here: Auditors Activities Act (Riigiteataja)
An online calculator to check whether the criteria applies to your company by your company’s approximate indicators on the balance date can be used here: Audit Calculator (Estonia’s Auditors Association)
Please note that the confirmation of final requirement for audit should always be discussed with your accounting service provider, who is preparing the annual report.
In case you fall under these requirements or are not sure if this applies to you and require either a statutory audit, an audit review or consultancy in the matter, please send us an inquiry together with some information about your company to [email protected] and we will try to help you find an audit partner.