An audit and annual accounts are not the same
Management prepares the annual accounts using the company’s accounting records and the structure required by law. A statutory audit or limited review is a separate engagement performed by a certified auditor when the legal conditions apply.
Preparing annual accounts includes
- Reviewing accounting records and closing the ledgers
- Assessing assets, liabilities, income and expenses
- Preparing the financial statements and required notes
- Approving and filing the report
When an auditor is required
The requirement for an audit or limited review depends on the company category, financial indicators and other circumstances specified by law. Thresholds and conditions can change and should be checked for the relevant reporting year.
Early preparation helps identify missing documents, inconsistencies and matters that should be discussed with the accountant or certified auditor.