Cyprus Company Law Cap. 113, art. 142, enacts that all Cyprus Companies are required to ensure that financial statements on IFRS (International Financial Records Standards) are drawn. All Cyprus Companies also are required to appoint a qualified local Auditor.
The audited accounts of a Cyprus Company must also be submitted to the Cyprus Registrar of Companies on the 31st of December following the tax year audited, by submitting form HE32, on the pain of penalties if it is not submitted. Auditing in Cyprus is of the highest quality and ethical standards.
Accountants in Cyprus are well organised and most of them educated in the best European Universities. The Cyprus Accountants are usually organised into Accounting Firms of a number of Accountants, VAT experts and Auditors. Accountants in Cyprus are regulated by their professional body under strict laws and regulations as to quality of accounting standards and audit quality and rules of etiquette.
Due to independence considerations, we do not undertake the audit of Companies we administer and manage. However, we will facilitate the entire process, from the appointment of the independent auditor until final sign-off and submission of the FS.
We would like to take this opportunity to warn all prospective clients of the risks associated with engaging a Cyprus Corporate Service Provider or Law Firm which performs audit in-house (an albeit too common occurrence).