Statutory Audit in Cyprus
Cyprus companies are generally required to have their annual financial statements audited by an independent, ICPAC-registered practising auditor under Companies Law, Cap. 113. Since the 2016 amendment (Law 97(I)/2016), smaller companies meeting BOTH net turnover AND gross assets thresholds may replace the statutory audit with a review engagement conducted under ISRE 2400 (Revised). From financial years beginning on or after 6 February 2026, the turnover threshold rises from €200,000 to €300,000, while the assets threshold remains at €500,000.
What is a statutory audit?
A statutory audit is an independent examination of a Cyprus company's annual financial statements to express an opinion on whether they give a true and fair view in accordance with International Financial Reporting Standards (IFRS) and comply with the requirements of the Cyprus Companies Law, Cap. 113. It is performed only by auditors licensed by the Institute of Certified Public Accountants of Cyprus (ICPAC) and holding a valid practising certificate.
The end product is a formal auditor's report attached to the company's financial statements, submitted to the Registrar of Companies and used by tax authorities, banks, and other third parties.
When does your company need one?
Most Cyprus companies incorporated under Cap. 113 have an annual audit obligation. Following the 2016 amendment to the Companies Law, small companies may replace the statutory audit with a review engagement (ISRE 2400 Revised) if they satisfy both of the following criteria: net turnover below €200,000 (rising to €300,000 for financial years beginning on or after 6 February 2026), and total gross assets below €500,000. There is no employee-count criterion for this Cyprus rule.
Even where the review engagement route is available, many Cyprus tax practitioners recommend a full audit because certain lenders, regulators, and counterparties require audited accounts. A review engagement is not equivalent to an audit — it provides limited assurance rather than the reasonable assurance an audit expresses.
Cyprus-specific rules and deadlines
Financial statements must be prepared under IFRS as adopted by the EU. The company's directors are required to lay audited financial statements before the annual general meeting no later than 18 months after incorporation and thereafter at intervals not exceeding 15 months.
The annual return (form HE32) must be filed with the Registrar of Companies together with a copy of the audited financial statements. Late filing of the HE32 attracts progressive fines that accumulate monthly. Public interest entities and regulated firms (CySEC-supervised entities, banks, insurance companies) have additional audit requirements beyond the general regime.
Typical audit fees in Cyprus
Audit fees vary widely based on the company's complexity, size, industry, and the firm engaged. Indicative ranges: dormant or micro companies €500-€1,500; small trading SMEs €1,200-€3,500; mid-market companies €3,500-€10,000; and larger or regulated entities €10,000-€50,000+. Big 4 firms typically price at the higher end, while smaller ICPAC-registered practices offer competitive rates for SMEs.
Additional fees may apply for tax computation, tax return submission, corporate services, and specialist opinions such as going concern or fair value assessments.
How to choose a statutory auditor
Verify that any firm you engage holds a current ICPAC practising certificate and is authorised to sign audit reports. Consider the auditor's experience with your industry and company size, and check their working style — some firms are more relationship-driven, others process-focused. For groups with international operations, an auditor affiliated with a global network (Big 4, or firms like Grant Thornton, BDO, Baker Tilly, PKF, Nexia, HLB) may offer cross-jurisdiction consistency.
Get written engagement letters that specify the scope, fees, and deliverables. If you're changing auditor, communication between outgoing and incoming firms is required under professional ethics rules.
Firms specialising in Statutory Audit
10 firmsMulti-practitioner firms with documented practice in Statutory Audit, ranked by claim status, listing completeness, and client rating.
P. Constantinou is a certified public accounting and audit firm based in Limassol, Cyprus. They offer a full range of professional services including audit, tax, corporate services, and business advisory. The firm is a member of The Financial Group International and leverages an international network of associates.
A&C Christofi Ltd is a Cyprus-based firm of Certified Chartered Accountants and Registered Auditors, providing accounting, audit, tax, payroll, business advisory, and other professional services to SMEs and individuals. With over 17 years of experience, they emphasize human-centered advisory and technology-enabled efficiency.
M.T. Michaelides Co Ltd is a Cyprus-based firm of chartered certified accountants offering audit, accounting, tax, and business advisory services. It is a member of INTEGRA International since 2004, providing international reach.
Joannides + Co Ltd is a leading Cypriot firm of accountants and management consultants with over 45 years of experience. They provide audit, tax, business support, fund administration, and management consulting to international companies and private clients. The firm has offices in Nicosia, Limassol, and Larnaca and is a member of AGN International.
Anthimos Leonidou & Partners Ltd is an independent firm based in Limassol, Cyprus, established in 1987. It provides a wide range of financial services including accounting, audit, taxation, and consulting to individuals and corporate clients locally and internationally. The firm has 45 professionals and is a member of ICPAC and ACCA.
Reanda Cyprus is a professional services firm offering corporate, accounting, and international tax services. They help clients navigate the complexities of international business with services including audit, tax, corporate finance, immigration, and compliance. They are part of the Reanda International network, originally founded by a top-tier Chinese firm in 1993.
PEK Ltd is a Cyprus-based professional services firm offering auditing, taxation, bookkeeping, corporate services, consulting, shipping, and yacht registration. The firm emphasizes quality and client trust, with a specialized team operating in an internationally oriented environment.
Baker Tilly South East Europe provides assurance, tax, advisory, and specialist consulting services across Cyprus, Greece, Bulgaria, Romania, and Moldova. The firm emphasizes a people-first approach and aims to help clients grow by anticipating future challenges. It is a member of Baker Tilly International.
AGBS Group is a boutique professional services firm in Cyprus with over 40 years of experience. It offers audit, accounting, taxation, VAT, corporate services, business consultancy, and fiduciary services to local and international clients across various industries.
PKF Cyprus is one of the largest accounting firms in Cyprus, operating from offices in Limassol and Nicosia with over 100 staff. They offer audit, taxation, business solutions, and corporate finance services, specializing in structuring multinational companies and serving a diverse range of industries. The firm is a member of the PKF International network and holds quality-checked accreditation from ICPAC and ACCA.
Independent specialists
113Certified Public Accountant · Limassol
Certified Public Accountant · Limassol
Certified Public Accountant · Larnaca
Certified Public Accountant · Limassol
Certified Public Accountant · Limassol
Certified Public Accountant · Limassol
Certified Public Accountant · Famagusta
Certified Public Accountant · Nicosia
Certified Public Accountant · Larnaca
Certified Public Accountant · Larnaca
Certified Public Accountant · Larnaca
Certified Public Accountant · Nicosia
Certified Public Accountant · Limassol
Certified Public Accountant · Limassol
Certified Public Accountant · Larnaca
Certified Public Accountant · Paphos
Certified Public Accountant · Famagusta
Certified Public Accountant · Paphos
Certified Public Accountant · Limassol
Certified Public Accountant · Limassol
Certified Public Accountant · Nicosia
Certified Public Accountant · Limassol
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
Certified Public Accountant · Limassol
Certified Public Accountant · Nicosia
Certified Public Accountant · Limassol
Certified Public Accountant · Limassol
Certified Public Accountant · Limassol
Certified Public Accountant · Nicosia
Certified Public Accountant · Larnaca
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
Certified Public Accountant · Larnaca
Certified Public Accountant · Larnaca
Certified Public Accountant · Paphos
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
Certified Public Accountant · Larnaca
Certified Public Accountant · Limassol
Certified Public Accountant · Limassol
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
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Frequently asked questions
Do dormant Cyprus companies need a statutory audit?
A dormant company meeting both the €200,000 turnover and €500,000 assets thresholds (rising to €300,000 turnover from 6 February 2026) can substitute a review engagement (ISRE 2400 Revised) for the full statutory audit. However, some lenders and counterparties still require audited accounts, and most dormant company holders opt for a low-cost dormant audit anyway. There is no full exemption from the annual filing obligation itself.
How long does a statutory audit take?
For a small trading company with clean records, the audit process usually takes 2-4 weeks from receipt of complete financial records. Mid-market companies typically need 4-8 weeks, and larger or regulated entities can take 2-3 months. Delays are most often caused by incomplete documentation, missing bank confirmations, or unclear transactions requiring investigation.
Can I change my auditor mid-year?
You can appoint a new auditor at any general meeting, but the outgoing auditor must be given the opportunity to make representations. The Companies Law requires specific procedures including written notice and a statement from the outgoing auditor. Most changes are timed to coincide with the annual general meeting to avoid procedural complications.
What is the difference between statutory audit and internal audit?
Statutory audit is an external, independent examination required by law, producing an auditor's report for third parties. Internal audit is a management function providing independent assurance to the board and senior management on the effectiveness of internal controls, risk management, and governance. Statutory audit is required; internal audit is discretionary.
Are Cyprus branches of foreign companies required to be audited?
Branches of overseas companies registered with the Registrar of Companies must file audited financial statements of the parent company annually (form HE28), together with certain particulars about the branch. In practice this means the parent's audited group accounts are filed. A separate branch audit is not typically required unless specified by the foreign parent's home jurisdiction.
What happens if I don't file audited accounts on time?
Late filing of the HE32 annual return with audited financial statements attracts progressive fines starting at €50 and increasing monthly, plus potential director-level penalties. Persistent non-compliance can lead to the company being struck off the register. Directors may also face criminal proceedings under Section 121 of Cap. 113 for wilful failure to file.
Can Big 4 audit small Cyprus companies?
Yes, Big 4 firms (PwC, KPMG, Deloitte, EY) will audit companies of any size, but their fee structures make them expensive for smaller entities. Most Cyprus SMEs are better served by mid-tier firms (Grant Thornton, BDO, Baker Tilly, PKF) or independent ICPAC-registered practices offering audits at appropriate price points.