ISRE 2400 (Revised): ICPAC's Alternative Suggestion

Recently, The Institute of Certified Public Accountants of Cyprus (ICPAC) proposed an alternative option to the assurance of the financial statements of very small entities.

In accordance with the ISRE 2400 (revised) a private company, a partnership and a self-employed person whose annual turnover and any other gross income exceeds 70.000 euros per annum, and therefore has an obligation to submit audited financial statements and groups that are exempted from preparation of consolidated financial statements, can opt to undertake a review engagement instead of an audit engagement in case their net turnover does not exceed or cease to exceed 200.000 euros per annum and their total gross assets do not exceed or cease to exceed 500.000 euros per annum for at least two consecutive years. Both criteria must be co-existed to consider that they are not exceeded.