Statutory Audit of Annual Reports
A statutory audit performed by a Sworn Auditor in accordance with Latvian legislation and International Standards on Auditing — for companies across Latvia, in Latvian and English.
Who is this service for?
The audit obligation is set out in the Law on the Annual Financial Statements and Consolidated Financial Statements. A statutory audit is mandatory for:
- medium-sized and large companies
- group parent companies
- companies whose securities are listed on a regulated market
- capital companies of public entities, their subsidiaries and public-private capital companies
- small companies exceeding two of three thresholds for two consecutive years: balance sheet total EUR 1,000,000, net turnover EUR 2,000,000, 50 employees
Many companies also choose an audit voluntarily — where shareholders, banks, investors or group management expect independent assurance. This is common for foreign-owned companies and subsidiaries of international groups in Latvia.
What does the audit include?
- audit planning and understanding of the business
- assessment of the internal control environment
- testing of financial statement items and gathering of evidence
- communication with management and accountants throughout
- the auditor’s report with an opinion on the annual report
- communication of significant findings and practical recommendations, where applicable
How does the engagement work?
The engagement starts with a discussion about the business and deadlines. After reviewing the expected documents and scope, we prepare an individual proposal. Engaging the auditor early, ideally before the financial year ends, allows the work to be planned efficiently. Communication and agreed deliverables are available in English.
Pricing is agreed individually based on the company’s activities, the scope of the engagement, information availability and deadlines.
Frequently Asked Questions
When is a statutory audit mandatory?
It is mandatory for medium-sized and large companies, group parent companies, listed and public-entity companies, and small companies exceeding two of three thresholds for two consecutive years: EUR 1,000,000 (balance sheet), EUR 2,000,000 (turnover), 50 employees.
How long does an audit take?
It depends on the company’s size, the readiness of documentation and deadlines. We agree on a timeline at the start of the engagement.
Can the audit be conducted in English?
Yes. We work in Latvian and English, including communication with group management and auditor’s deliverables where the engagement allows.
Need this service?
Contact us — we will assess the situation and prepare an individual proposal.