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    Country by Country Financial Reporting and Auditing Framework

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    Cyprus – Crowe Horwath Cyprus (prepared January 2015)

    Preparation and Filing of Statutory Financial Statements

    Companies registered in Cyprus are required to prepare annually financial statements and file these with the Cyprus Registrar of Companies.  They are open to the public at a fee.


    Companies with subsidiaries must prepare consolidated financial statements.  A group of companies may be exempted from consolidation should it meet certain criteria in the Companies Law.


    Financial Reporting Framework

    All Cyprus companies must maintain accounting records which give a true and fair view of the company's financial position and of its profit or loss and prepare annually financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and the requirements of the Cyprus Companies Law, Cap. 113.  There is no other local GAAP.


    Companies can choose their year end date.  The first set of financial statements can be prepared for a period of up to 18 months from incorporation. Subsequent sets of financial statements should be prepared annually.  Most companies choose the 31 December as their year end so as to coincide with the tax year which is the calendar year (i.e. 1 January to 31 December).


    Audit Requirements for Companies Registered in Cyprus

    As a general rule all Cyprus companies need to have their IFRS financial statements audited by a qualified auditor.


    Private limited liability companies which meet the criteria of small-sized companies may be exempted from audit as per the Cyprus Companies Law, Cap. 113. 


    Audit Appointment, Rotation and Joint Audits


    Auditors are appointed by the members of a company at the company's Annual General Meeting.

    Cyprus follows the provisions in the Code of Ethics as issued by IESBA in relation to rotation of auditors.

    Joint audits are extremely rare in Cyprus.


    Auditing Standards

    All audits must be conducted in accordance with International Standards on Auditing (ISAs).


    Ethical Framework

    Auditors in Cyprus have to comply with the Code of Ethics as issued by the International Ethics Standards Board for Accountants (IESBA) and with International Standard on Quality Control 1 (ISQC1).


    Audit Regulation

    Audit firms who wish to sign company audit reports must obtain a license from a recognized body of accountants that has been licensed by the government.  There is only one licensed body currently in Cyprus, being the "Institute of Certified Public Accountants" (ICPAC).  The members of the licensed audit firms should also individually obtain practicing certificates from ICPAC to be allowed to sign audit reports.  

    All audit firms in Cyprus are subject to quality control visits from ICPAC at least once every 3 years if the audit firm signs audit reports of public/listed entities and once every 6 years for all other audit firms.


    Transparency report

    Audit firms that perform audits for public interest entities are required to prepare an annual transparency report and either publish it on their websites or file it with the Registrar of Companies.


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