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The measure is aimed at simplifying compliance for small businesses, with more than 54,000 enterprises expected to benefit from the revised threshold. Companies exceeding the €300,000 turnover limit will continue to undergo a full statutory audit.
What This Means for Cyprus Companies
For small businesses (small Cyprus limited by shares companies), the key change is procedural rather than substantive. Eligible companies will undergo a review by their auditors rather than a full-scope audit, while those above the threshold will remain subject to full audit requirements.
The change is not expected to significantly affect audit or review fees. In practice, audit and review fees in Cyprus are already relatively low, and auditors are still required to perform extensive work, apply professional judgment, and maintain detailed documentation when conducting reviews.
Importantly, review engagements will continue to be subject to regulatory inspection by the Institute of Certified Public Accountants of Cyprus (ICPAC), in the same way as audit engagements. This ensures that quality, transparency, and professional standards are maintained despite the lighter reporting framework.
Regulatory Oversight Remains Strong
In parallel, the Institute of Certified Public Accountants of Cyprus (SELK) has been designated as the competent authority for setting Financial Reporting Standards, subject to approval by the Minister of Finance. The Minister will also oversee coordination with the European Commission and the official publication of the standards.
Overall, the revised framework seeks to reduce unnecessary regulatory burden for smaller enterprises while preserving strong oversight, accountability, and alignment with international financial reporting standards.
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