Audit of the Annual Report in Estonia
Learn when an annual audit or review is mandatory in Estonia based on financial thresholds or legal entity type.
According to Estonian law, an audit or review of the annual financial report is mandatory in certain cases. A sworn auditor’s report must be attached to the annual report if the audit requirement applies under the Auditors Activities Act.
When Is an Audit or Review Required?
An audit or review of the annual report is mandatory if the entity is required to keep accounting records and at least two of the following thresholds are exceeded:
| Criteria | Audit | Review |
|---|---|---|
| Revenue from sales or income | Over €4,000,000 | Over €1,600,000 |
| Total assets on the balance sheet date | €2,000,000 | €800,000 |
| Average number of employees | 50 | 24 |
An audit is also mandatory if at least one of the following higher thresholds is exceeded:
| Criteria | Audit | Review |
|---|---|---|
| Revenue from sales or income | Over €12,000,000 | Over €4,800,000 |
| Total assets on the balance sheet date | €6,000,000 | €2,400,000 |
| Average number of employees | 180 | 72 |
Mandatory Audit for Specific Entities
An annual audit is always mandatory for the following:
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Public limited companies (AS)
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Government institutions required to keep accounting records
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Local government units
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Legal entities governed by public law
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Foundations
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Political parties receiving allocations from the state budget