April 2024
Navigating the Auditing Landscape for Your Estonian Company
Managing a company involves various responsibilities, and audits are a common concern for business owners. While audits can be daunting due to their additional costs and scrutiny, understanding when they’re necessary is crucial.
Unlike some jurisdictions where auditing is mandatory regardless of company size, most Estonian private limited companies (OÜs) enjoy the advantage of not requiring audits, aligning with Estonia’s commitment to a competitive corporate tax system.
However, certain criteria trigger audit requirements in Estonia, impacting business owners’ obligations and accounting practices.
What Triggers Audits in Estonia?
Audits serve to ensure financial accuracy, regulatory compliance, and transparency. In Estonia, audits become mandatory if your annual report meets specific criteria, including sales revenue, total assets, and average number of employees.
For instance, audits are required if your annual report meets certain financial thresholds, such as sales revenue exceeding 4 million euros or total assets surpassing 2 million euros. Additionally, if your annual report exceeds certain conditions, audits become mandatory, irrespective of meeting the initial criteria.
Appointing an auditor is a crucial step, requiring consent and contractual agreements before proceeding with the audit.
Finding an Auditor in Estonia
Securing the services of an auditor in Estonia can be challenging due to high demand, leading to delays and increased costs. Recent trends show a significant rise in the number of companies undergoing audits, driving up audit fees substantially.
Failure to undergo an audit can result in an inability to submit annual financial statements, underscoring the importance of proactive engagement with auditing processes.
Partnering with an experienced accounting firm proficient in Estonian regulations and tax planning can streamline audit processes and ensure compliance. WPS Partners specializes in managing Estonian companies, offering a range of services including audit support tailored to meet your company’s specific needs.
If you require audit assistance or wish to explore our comprehensive services, don’t hesitate to reach out to our team of specialists at WPS Partners.