Statutory audit or limited review — what is the difference?
By Artūrs Strazdiņš, Sworn Auditor
Both engagements are performed by a Sworn Auditor and both result in an auditor’s report. In substance, however, they differ — in the scope of work and in the level of assurance provided.
Updated July 2026. Thresholds and obligations reflect Sections 91 and 92 of the Law on the Annual Financial Statements and Consolidated Financial Statements. The applicable requirement also depends on the undertaking’s status and other statutory conditions.
What is a statutory audit?
In an audit, the auditor obtains reasonable assurance that the annual report as a whole is free from material misstatement and issues an opinion. The work follows International Standards on Auditing.
What is a limited review?
A limited review has a narrower scope of procedures. The result is a limited assurance report. In Latvia it also includes the verification of corporate income tax amounts.
The key differences at a glance
| Audit | Limited review | |
|---|---|---|
| Assurance level | reasonable | limited |
| Scope of procedures | broad | narrower |
| Report | opinion | review report |
| Scope and time | typically greater | typically smaller |
Which engagement is mandatory for your company?
This is set by law: an audit for larger companies and small companies above EUR 1,000,000 / 2,000,000 / 50; a limited review for small companies above EUR 500,000 / 1,000,000 / 25. Borderline situations are best assessed individually. A small company may choose an audit instead of a limited review.
Frequently Asked Questions
Is a limited review a ‘small audit’?
It is often called that informally, but they are distinct engagements with different assurance levels and reports.
Will a limited review satisfy a bank?
This depends on the recipient’s requirements — some accept a limited-review report, while others require an audit opinion. Confirm the requirement with the bank or other intended recipient before commissioning the engagement.
Can a company switch to an audit?
Yes, a small company may choose an audit in any given year.
Artūrs StrazdiņšSworn Auditor (certificate No. 228), board member of SIA RE Audit. Working in audit since 2008. More about the author →Not sure about your situation?
Contact us — we will assess your company’s indicators and suggest a solution.