Audit in Slovakia

What is an audit and who needs it?

Act no. 540/2007 Coll about the auditors, audit and supervision of auditing in his later amended (hereafter "Auditors Act") defines the conditions for auditing.

The audit is the verification of individual or consolidated financial statements and the annual report verifying compliance with the financial statements or consolidated financial statements.

The result of the audit is the auditor's report that contains an audit opinion.

OBLIGATIONS OF AUDIT COMPANY:

- Carry out an audit with professional care by qualified persons

- Sign a liability of damages insurance contract which might arise in relation with the audit,

- Keep confidential all facts of which the audit team members has become aware in relation to the audit performance.

- Keep the audit documentation about the audit process

SUBJESTS THAT ARE REQUIRED TO HAVE AUDITED THEIR FINANCIAL STATEMENTS BY AN AUDITOR:

Entities that are required to audit are mentioned in § 19 of the Accounting Act in paragraphs 1 and 4

1. Limited Liability Company (s.r.o.), a joint stock company (a.s.) and cooperative (družstvo)

Ordinary and extraordinary individual financial statements must be audited in case of trading company which are mandatory to create basic equity. Public trade company (v.o.s.) and commandite company (k.s.) does not create mandatory basic equity, consequently, are not covered by the audit obligation.

This applies if at the current, and for the immediately preceding accounting period, at least 2 of the 3 conditions are fullfilled:

a) total assets exceed € 1 million (gross)

b) the net turnover exceeds € 2,000,000 ( account groups: 60, 64, 66)

c) average number of employees exceeds the number of 30 employees.

2. Trading company and cooperative whose securities are admitted to trading on a regulated market.

3. Entities which are required by special regulation (foundations, nonprofit organizations, citizen's cooperatives, chambers, municipalities, funds ...)

4. An entity that prepares financial statements in accordance with § 17a (IFRS)

5. Legal persons who received annually income tax according to § 50 of the ITA more than 35 000 EUR for the year in which these funds were used. (Relating to civic associations, foundations ...)