AUDIT
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Financial audit requirements in Latvia are based on Law on the Annual Financial Statements and Consolidated Financial Statements. With more years of experience in audit, we offer a variety of areas of expertise. We are not just certified auditors, but also certified tax consultants, certified accountants, ex-BIG4 managers which in combination provide the best knowledge to address any difficulty you might face.
We provide value from audit by spotting possible improvements and suggestions to improve your financial management.
Standalone audit
Standart statutory audit based on Latvian legislation as well as IFRS. We have experience in 99% of industries in Latvia.
Consolidated audit
We have experience in audit of consolidated financial statements exceeding 20 entities and more than 200M EUR.
audit review
Review of financial statements based on Latvian legislation and ISRE 2400 for smaller entities.
What is a statutory audit?
A statutory audit is a legally required review of the accuracy of a company’s or government’s financial statements and records.
The purpose of a statutory audit is to determine whether an organization provides a fair and accurate representation of its financial position by examining information such as bank balances, bookkeeping records, and financial transactions.
Financial audit requirements in Latvia
Based on the Law of the Republic of Latvia on Annual Reports and Consolidated Annual Reports companies in Latvia are subject of three types of audit procedures:
- Audit on standalone financial statements
- Audit on consolidated financial statements
- Audit review – means less audit detailed procedures, but also this means less assurance. The review is performed based on INTERNATIONAL STANDARD ON REVIEW ENGAGEMENTS 2400, please see the standard here to gain more understanding of such an engagement.
Please see below types of companies which require audit based on their characteristics.
audit of Standalone financial statements
A company which on the balance sheet date for two consecutive years exceed two of the following limit values:
a) a balance sheet total - EUR 1 000 000;
b) a net turnover - EUR 2 000 000;
c) an average number of employees in the reporting year - 50.
Any company which on the balance sheet date does exceed at least two of three limit values of the criteria:
1) a balance sheet total - EUR 5 000 000;
2) a net turnover - EUR 10 000 000;
3) an average number of employees during the reporting year - 50.
Public companies and their subsidiaries. Essentially this means entities that are publicly traded.
Public-private capital companies.
State and municipality companies and their subsidiaries.
Parent companies, without significant exemptions. This implies to most of the companies which have investments that deem control. Generally speaking, if a company has an investment above 50%, then this company is a subject of the audit.
Companies that elect IFRS regardless if IFRS's have been implemented in full or partly.
audit of Consolidated financial statements
Any company which on the balance sheet date does exceed at least two of three limit values of the criteria:
1) a balance sheet total - EUR 5 000 000;
2) a net turnover - EUR 10 000 000;
3) an average number of employees during the reporting year - 50.
Public companies and their subsidiaries. Essentially this means entities that are publicly traded.
Audit review
Public companies and their subsidiaries. Essentially this means entities that are publicly traded.
1) a balance sheet total - EUR 500 000;
2) a net turnover - EUR 1 000 000;
3) an average number of employees in the reporting year - 25.
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Phone: +371 28660245
Email: gramatvediba@ilatax.com
Antonijas 8-8, Riga
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ILA Tax & Accounting Solutions
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