Who is required to audit the financial statement?
July 18, 2022
A financial statement is a document that contains information about the financial situation of an enterprise. It allows to assess the company’s condition based on data from a given tax year. Sometimes there are doubts whether the audit of financial statement is required in case of a given enterprise in Poland. The conditions for, inter alia, limited liability companies or general partnerships. Check if your company has to perform an audit of the financial report.
The obligation of audit of a financial statement applies to:
- Annual consolidated financial statements of capital groups and annual financial statements of entities that continue their operations, including entities from the financial sector (including banks), insurers, joint-stock companies. This obligation arises directly from the act and does not take into account additional conditions that must be met.
- Other entities (mainly limited liability companies, general partnerships, partnerships, limited partnerships, civil partnerships and enterprises of natural persons), which in the previous financial year, for which financial statements were prepared (in relation to the statements for 2022, the data for 2021 are taken into account), meet at least two of the following conditions:
| The amounts specified in Art. 64 sec. 1 point 4 the Accounting Act | Data for 2021 converted at the average exchange rate of the National Bank of Poland as of December 31, 2021 (EUR 1 = PLN 4.5994 / EUR) |
| the average annual employment converted into full-time jobs amounted to | at least 50 people |
| the total assets of the balance sheet at the end of the financial year were the Polish currency equivalent of at least EUR 2,500,000 | EUR 2,500,000 × PLN 4.5994 / EUR = PLN 11,498,500 * |
| net revenues from the sale of goods and products as well as financial operations for the financial year were the Polish currency equivalent of at least EUR 5,000,000 | EUR 5,000,000 × PLN 4.5994 / EUR = PLN 22,997,000 * |
* Values expressed in EUR as at the balance sheet date converted into the Polish currency at the average exchange rate announced by the National Bank of Poland
- The audit also covers the financial statements of the acquiring companies and newly formed companies, prepared for the financial year in which the merger took place, as well as the annual financial statements of the entities prepared in accordance with IAS, the annual combined financial statements of investment funds with separated sub-funds and the annual separate reports of the sub-funds (cf. Article 64 (3) and (4) of the Accounting Act).
- It is compulsory to audit their financial statements also for those entities keeping accounting books that have chosen the balance sheet method for determining the exchange rate differences for tax purposes. In most cases exchange rate differences are calculated separately for accounting purposes and for tax purposes.
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