Chamber of Auditors on the draft of the new Accounting Act – changes to the statutory audit

The Chamber of Auditors of the Czech Republic (hereinafter the “CCA”) has published on its website its statement in connection with the proposal of the new accounting act, which is being prepared by the Ministry of Finance of the Czech Republic to change the limits for mandatory audit (verification of financial statements) of accounting units in the Czech Republic.

The CCA does not agree with either of the proposed options, i.e. either to increase the limits for the obligation to audit small accounting units (increase the turnover limit to CZK 130m from the current CZK 80m and increase the asset limit to CZK 65m from the current CZK 40m) or to leave the obligation of mandatory audit only for medium and large accounting units (small accounting units would therefore no longer be mandatorily audited entities).

CCA states that it does not have any documentation on the decisions in question and this fact has not been discussed with CCA. At the same time, it is concerned not only about the negative impact on companies and the business environment in the Czech Republic (protection of companies from harmful transactions related, for example, to money laundering), but also about possible effects on the audit market.  

The statement itself is available on the CCA website: https://www.kacr.cz/vyjadreni-komory-auditoru-k-navyseni-limitu-pro-povinny-audit-v-cr.

We will monitor further developments in the legislative process of the new Accounting Act and keep you informed of any changes. 

Author: Petra Čechová