Required auditing in an Estonian company and the price of the service
A popular question is what is an audit for an Estonian company in 2021, when it is required, and whether it is necessary at all. Before conducting an audit for an Estonian company in 2021, you need to know in advance which firm or individual has the right to perform the audit. Get answers to these and other questions about doing business from our experts at IT-OFFSHORE.
The necessity of the event is regulated in the country by law. An audit is a service that is conducted to verify financial information and report on it. The final documentation contains the expert's opinion of the company's work.
During the audit, information is gathered about the company's activities and events on which the information in the company's accounting report is based. The review can be selective or complete.
The review is a service. Its purpose is to obtain data from a certified public accountant on the state of the annual report. In other words, the auditor performs a simplified review of the company's work, after which he/she prepares a report in which they states that they have not found any data, confirming the incorrectness of the accounting.
Who can be audited
An audit of the financial statements in the country is obligatory for all JSCs and private limited companies if the share capital amounts to more than 25 thousand euros. The audit of the annual accounts is obligatory if the annual income from sales exceeds 2 million euros, the total assets exceed 1 million euros, and the average number of employees is 30 or more.
The review of the report is mandatory if the sales revenue or income exceeds 1 million euros, the total assets exceed 500 thousand euros, and the average number of employees is more than 15 people.
Only a certified auditor or an appropriate firm can carry out this procedure. Their work is supervised by the Assembly of Auditors. In 2021, the audit fee for an Estonian firm is about 50 euros, additionally VAT is paid per net hour. A full review costs on average about 300 euros, and an audit - at least 700 euros.