Assurance Services

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In Cyprus, companies have the option of undergoing either a full audit or a limited assurance review, depending on their size and nature. Here's an overview of the current audit and review requirements:

Full Audit

Full audits are required for:

• Companies exceeding the thresholds for limited assurance review
• Public interest entities
• Companies regulated by the Central Bank of Cyprus, Cyprus Securities and Exchange Commission, or Commissioner of Insurance
• Parent companies preparing consolidated financial statements
• Subsidiaries of companies requiring full audits 

 Full audits are conducted in accordance with International Standards on Auditing (ISAs) and involve a comprehensive examination of financial statements.

Limited Assurance Review

As of January 1, 2023, smaller companies in Cyprus can opt for a limited assurance review instead of a full audit if they meet the following criteria for at least two consecutive years:

• Net turnover does not exceed €200,000
• Total balance sheet does not exceed €500,000

This option aims to reduce administrative burdens and costs for small and medium-sized enterprises (SMEs).

Key Differences

1. Scope: Full audits provide high assurance, while limited assurance reviews offer moderate assurance on financial statements.
2. Procedures: Full audits involve more extensive testing and evidence gathering compared to limited assurance reviews.
3. Cost: Limited assurance reviews are generally less expensive and time-consuming than full audits.
4. Report: The auditor's report differs between full audits and limited assurance reviews, reflecting the level of assurance provided.

Companies should consult with a qualified audit firm to determine the most appropriate option based on their specific circumstances and regulatory requirements.