In today's dynamic business environment, transparency and accuracy of financial information is key to maintaining the trust of investors, business partners and customers. One of the most important aspects that influences this transparency is the verification of the financial statements by an independent auditor.
The obligation to verify the financial statements by the auditor applies to different types of companies and organizations
1. Commercial companies and cooperatives if, at the date on which the accounts are drawn up and for the immediately preceding accounting period, at least 2 of the following conditions are met:
✓ Total amount of assets: more than 4,000,000 euros,
✓ Net turnover: more than 8,000,000 euros,
✓ Number of employees: more than 50.
2. Bodies of public interest— for example banks, insurance companies, companies whose securities are admitted to trading on a regulated market, pension management companies.
3. Entities subject to special regulation— for example, foundations, civic associations and non-investment funds, subject to compliance with the conditions laid down by law, municipalities, various chambers.
What is the amount of the penalty for not verifying the financial statements by the auditor?
According to the Accounting Act, any entity that meets the conditions established by law is obliged to ensure that the financial statements are verified by the auditor. If he fails to fulfill this obligation, commits an administrative offense.
Amount of the fine is not fixed but may be up to 2% of the value of 'net assets', but not more than 1 million euros.
Benefits of Auditing Financial Statements
- Increase credibility: Independent verification increases the confidence of investors and business partners in your financial reporting.
- Revealing discrepancies: The auditor is able to identify potential problems and inconsistencies, which can lead to improvements in internal processes.
- Improving financial management: The audit process can provide valuable recommendations to improve the efficiency of your financial operations.
The obligation to audit financial statements by an auditor may be necessary for some businesses, but may be of significant benefit to others. Regardless of whether you are required to have audited financial statements, this process can help you improve the overall transparency and credibility of your company.
Be sure to consult with audit experts to ensure that your financial statements are not only compliant, but also trustworthy.
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