External Audit — When mandatory and why it matters
An external audit is an independent review of a business's financial statements by an authorized auditor. The goal is to confirm that annual accounts present a true and fair view of the financial position.
Definition
An external audit is an independent review of a business's financial statements by an authorized auditor. The goal is to confirm that annual accounts present a true and fair view of the financial position.
Details
Mandatory for: medium entities (revenue >2M EUR or >50 employees), large entities, joint-stock companies, financial institutions. Small DOOEL/DOO usually are NOT audited. Auditor issues: unqualified opinion, qualified, adverse or disclaimer. Cost ranges from 50K to 500K+ MKD depending on size.
Example
DOO with 3M EUR revenue is required to audit. Engages authorized auditor → 2-week audit → unqualified opinion → annual accounts verified.