Audit or review

Audit or review?

Differences between audit and review in Estonia

Vadim Donchevski
5/1/2019
Audit or review
What is Review?

Review is one type of assurance giving engagement, which is in volume smaller than the regular audit and because of that provides lower confidence that the financial information audited by an auditor is in accordance with established requirements. Purpose of Review is to provide reasonable assurance to financial information user that such significant misstatements are not detected during the Review.

Criteria for compulsory audit or review 
 
Since 2017 new criteria for compulsory audit or review have been set for all subjects for accounting in Estonia. This criteria based even on revenue, total assets and number of employees or  ownerships of the entity    

 

The audit is mandatory for every joint-stock company with more than two shareholders, public company, accounting entity of state, local government, legal person in public law, foundations and political parties who get financial support from the state budget.

 

Voluntary audit or review 

Audit or review can also be carried out for financial information prepared for the purposes of consolidation in case such information will be submitted by foreign subsidiaries and their local accounting framework differs from the parent company (i.e. from Estonian GAAP or IFRS) and the group auditor decided  that this information should be audited or reviewed.  

Larger corporate groups and listed companies may also carry out reviews of interim report in accordance to the applicable rules and regulations.

Auditor's reports about the results of audit and Review

  • The result of audit will be a “positive opinion”, i.e whether audit results confirm or not confirm that the financial statements present financial information is in accordance with the stated requirements.
  • The result of review will be expressed in the form of “negative opinion” – based on the results of the review nothing come to the attention of the auditors that causes them to believe that the financial statements are not in compliance with stated requirements 

Check your obligations for audit or review based on numbers :

Sales revenue or income

Assets

Number of employees

Result :

No
According to applicable laws an audit or review does not need to be performed

Our team

Madis Valk
Madis Valk
Partner , CPA
Crowe DNW  OÜ
Vadim Donchevski
Vadim Donchevski
Partner, CPA, CFE, Audit and Advisory Services
Crowe DNW  OÜ
Olesja
Olesja Timofejeva
Director, Audit & Accounting Services
Crowe DNW  OÜ