Statutory Audit in Nicosia
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
17 firmsMulti-practitioner firms with documented practice in Statutory Audit, ranked by claim status, listing completeness, and client rating.
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.
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.
Demetriou & Associates Business Advisers Ltd (dba) is a dynamic firm of professional accountants and business advisers based in Nicosia, Cyprus. Established in 2017 by a team with over 30 years of experience, the firm offers audit, assurance, taxation, accounting, advisory, and business setup services. They are a member of DFK International, a global association of independent accounting firms.
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.
Alliott Partellas Kiliaris Ltd is a Cyprus-based professional services firm offering audit, accounting, tax, and business advisory services to local and international clients. They also provide company registration, payroll, and management consulting. The firm is a member of Alliott Global Alliance, combining local expertise with a global network.
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.
UHY Antonis Kassapis Ltd is the Cyprus member firm of UHY International, based in Nicosia. Established in 1991, it provides audit, tax, accounting, corporate and fiduciary, and management consultancy services to local and international clients.
CYAUSE Audit Services Ltd, established in 2011, is a Cyprus-based professional services firm offering audit, tax, accounting, company formation, licensing, and advisory services. With offices in Limassol, Nicosia, and Abu Dhabi, and membership in BKR International, the firm serves international and local clients across diverse industries, including high net worth individuals, investment firms, and trading companies.
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.
Grant Thornton Cyprus is a professional services firm offering assurance, tax, risk advisory, and business setup services. They recently launched EU AI Act & ISO 42001 GRC services and achieved ISO 27001 certification. The firm is part of the Grant Thornton International network.
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.
P. Kalopetrides & Co is a Cyprus-based professional services firm offering business consulting, tax, assurance, accounting, and advisory services. They serve onshore and offshore clients with a focus on family businesses and startups. The firm has offices in Nicosia, Limassol, and Paphos.
One of the leading professional firms in the service sector in Cyprus, G. Josephakis Audit Ltd offers audit and assurance, taxation, business advisory, accounting, company formation, and training services. Their mission is to provide high-standard professional services to help clients succeed.
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.
Kreston Proios Ltd is a leading independent accountancy firm in Cyprus, established in 1965. It offers audit, taxation, advisory, and management consulting services to local and international clients. The firm is a member of the Kreston global network and is an ACCA Approved Employer.
HLB Cyprus is a chartered accounting and advisory firm, originally established in 1997 and now among the largest in Cyprus. It provides audit, tax, advisory, corporate compliance, payroll, and cyber security services to a diverse, multinational clientele. The firm is a member of HLB International, a global network of independent accounting firms.
Morison Patsalides Limited is a Cyprus-based firm of chartered accountants founded in 1990. They offer audit, accounting, tax, international business, consulting, and corporate finance services. The firm is a member of the Morison Global international network and prides itself on a personal approach to client needs.
Independent specialists
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Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
Certified Public Accountant · Nicosia
🎯 Firms are ranked by claim status, listing completeness, and client ratings. Firms that have claimed their listing and provided detailed information rank higher. Claim your firm's listing →
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.