From the beginning, we mention that our team of accountants in Romania offers audit services in Romania in accordance with the International Standards on Auditing (ISA) fully adopted by the Chamber of Financial Auditors of Romania. Performing an audit in Romania is achieved by the analysis of an authorized specialist on the overall economic condition of a company, firm or institutional authority as it is shown in the accounting summaries, accounts, balance sheets and cash flows.
Quick Facts | |
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We offer audit services (YES/NO) | Yes |
Who needs audit services | – private companies, firms, – public authorities |
Types of audits | – financial, – construction, – operational, – tax, – compliance, – investigative |
Who can perform audits for companies | Certified financial auditors |
Professional investigation of accounts (YES/NO) | Yes |
Verification of annual financial statements | At the time an audit is performed |
Purpose of internal audit | To discover risk management in a firm |
Statutory audits available | On request |
Solutions for company management | Offered for better financial activities |
Legislation for audits | ISA or International Standards for Audits |
We provide inventory audit (YES/NO) | Yes |
Audit reports (YES/NO) | Yes |
Institution in charge of auditors | Chamber of Financial Auditors in Romania |
Status of a financial auditor | Independent |
Other types of audits for companies | On request |
Companies need a compulsory audit in Romania | If they meet at least two of these requirements on the reporting date and during two consecutive financial years: total assets over 3,650,000 EUR; net turnover – over 7,300,000 EUR; the average number of employees – over 50. |
Audit reporting standards in Romania | International Financial Reporting Standards (IFRS) |
Audit engagement letter | Required before starting an audit engagement |
Audit sampling | Statistical sampling techniques may be used while performing an audit in Romania. |
Audit fieldwork | Gathering of evidence and testing procedures |
Audit materiality | Determination of materiality thresholds during performing an audit in Romania |
Audit communication | Discussion with management and those in charge of governance, i.e; The Statutory Audit Public Oversight Authority (ASPAAS) |
Audit review and quality control | Internal and external review of audit work |
Audit professional liability | Auditor’s liability for negligence or misconduct |
Audit ethics | Compliance with ethical standards and code of conduct when performing an audit in Romania |
Audit fees | For small and medium-sized companies, it is expected to be 1200-3600 USD, whereas large corporations may pay 12,000 USD or more. |
Audit rotation | Statutory requirement for changing auditors periodically |
Audit exemptions | Certain small companies may be exempt from audit. |
Audit language | Romanian |
Audit disclosure | Auditor’s report is publicly available. |
The main elements which define the auditin Romania are the following:
Here is an infographic with information about audits in Romania:
In a financial audit for a company in Romania, the auditor verifies the financial situation presented by the firm, in order to see if it reflects the current status of the business. It is good to know that the company’s management is in charge of offering correct information about the financial situation, but there are cases in which errors are detected. The independent auditors who evaluate the financial status of the company and present the final report can help companies on the market by increasing the confidence among creditors, investors, etc. We mention that the independent financial auditors need to report the situation of the company to the owners and the managers of the firm.
In order to identify in time the risk management in a company, an internal audit is in most cases the proper solution. The purpose of an internal audit is to see if the risks in a company are properly managed and if the internal control system works accurately. In this sense, the bookkeeping, the acquisitions, the sales and the company’s production are verified. Such an internal audit in Romania is also recommended if there are suspicions of fraud in a company.
According to the Romanian laws, most companies are subject to different audits and need to present a clear statement of the financial situation and the risk management in the firm. The following situations are linked to the type of audits in Romania:
Legal entities in Romania are obliged to submit the annual financial statements, following a set of criteria and respecting the EU legislation too. The submission of the annual financial statements is regulated by Order no. 2.239/2022, where companies need to deposit form code 10 (the balance sheet) and form code 20 (the profit and loss account). All types of financial statements of companies registered in Romania must be accompanied by the Informative Data and the Statement of fixed assets. Besides these documents, it is necessary to present the external and internal audit reports of companies in Romania. Your Romanian accountant knows how to handle the annual financial statements, in respect to the applicable laws. If you decide to externalize the accounting services for your company in Romania, you can easily get in touch with our accounting firm in Romania and see the kind of services we can provide for your business.
Several types of audits can be performed in companies in Romania, mentioning that one of our Romanian accountants can provide complete information about each and one of them, on request. Here is what you need to know about a few important types of audits:
The above-mentioned types of audits can be solicited for a company in Romania. One of our Romanian accountants can explain more in this sense and can be hired for performing an audit in Romania. Please feel free to get in touch with us if you would like to hire the services of our accounting firm in Romania.
A statutory audit refers to the audit of individual annual financial statements or combined annual financial statements that are made in accordance with the international audit standards, as it is mandatory under EU and national laws in Romania. Statutory audits can be voluntarily performed at small business entities, mentioning that the audited financial statements must be published, in agreement with the applicable laws.
It is important to note that the statutory audits are performed by financial auditors or by audit firms with authorization in Romania. This means that the financial auditors in Romania must be registered as members of the Chamber of Financial Auditors in Romania and also listed to the electronic public register in Romania. The Authority for Public Supervision of the Statutory Audit Activity (ASPAAS) is the proficient and competent institution accountable for approving the financial auditors and the audit companies in Romania. More than that, it is good to know that ASPAAS approves only individuals or audit companies with a good reputation. For a better understanding of audit services for companies in Romania, please feel free to solicit our support and assistance.
An inventory audit is an accepted auditing procedure in Romania that comprises internal controls and verifications of the assets of a company. Normally, such an audit will reveal whether the declared assets of a company are available or not. An inventory audit will make a comparison of the inventory turnover ratio, unit costs, gross margin with previous years. In this case, the client or the company will present his/her procedures or policies relating to the inventory count. The auditor will then select a sample or a part of the items for testing and verify if the client complies with the proposed procedures for the count, if they are correctly performed, etc. Likewise, one should note, that a problem might appear and enter the attention of the auditor referring to the timing of the inventory remark. Moreover, for some goods like high-tech products or jewelry, it is unusual for an auditor to be capable or specialized to distinguish between real and fake products. In this case, a specialist for a full inspection might be hired.
A follow-up audit is required for corrective actions that normally cannot be performed at the time the audit takes place. Specific corrections might be necessary, so a follow-up audit can be recommended. If you would like to know more about follow-up audits, please feel free to talk to our team of accountants in Romania. They can propose the necessary types of audits, in agreement with the company’s policies and procedures.
The audit planning and preparation represents the first step of an audit procedure, it is made in advance in complete agreement with the auditor and the client. The next step is the audit execution or the execution phase, also named fieldwork that comprises a series of activities and operations. The communication with the auditors is extremely important. The third phase is the audit reporting where the results of the communication are revealed. The audit follow-up and conclusion are part of the fourth phase that closes the audit cycle. All the audit activities are planned and carried out, so the audit procedure can be closed.
We invite you to watch a video about how an audit is made:
Audits for companies in Romania are performed in respect and agreement with the International Standards on Auditing (ISA) and the International Financial Reporting Standards or IFRS. One of our auditors can give full support and guidance in matters of audits for companies in Romania.
A correct and pertinent evaluation of a company’s financial status can be revealed by an internal or external audit. Specific norms and regulations need to be respected.
Any accountant with financial auditor qualifications and a member of the Chamber of Financial Auditors in Romania can perform an audit for companies in Romania. We remind that an internal or external audit can only be performed by qualified and experienced accountants or auditors.
Companies trading shares on the market, firms obliged to present the financial statements as stated by the laws and companies looking to obtain financing must perform audits and present the report.
Our accounting firm in Romania knows how to sustain and help companies when it comes to financial audits and related matters. We are at your disposal with varied accounting services, among which, complete financial audits for your company in Romania.
Romania is an attractive business location for foreign investors. There are numerous large companies with branches and subsidiaries in Romania, that take advantage of an appealing tax structure, simple business formalities and registration, and well-developed industries. Here are some facts and numbers that highlight the business and the economy direction of Romania:
Our accounting specialists in Romania are able to offer financial audit consultancy services for all companies which are subject to these requirements, offering a release for the management board. By letting us perform the audit you will not see a financial control as an unpleasant surprise as we are able to provide the necessary advice throughout the year. We offer our services that will provide the overall framework for holding the entire audit in good condition by offering complete financial audit preparation services in Romania. Our Romanian team is able to provide you a complete review for the financial statements when the accounts are finalized and you want to achieve a review in accordance to the International Accounting Standards. We also provide you the qualified certification of annual financial statements, recognized by the Romanian Ministry of Finance.
For further information and customized advice, please contact us.