Audit limit amounts increased

In the Official Gazette dated 12 March 2024, the decision increasing the limit amounts for audit of financial statements was published. The decision can be invoked with effect from 13 March 2024.

Categories of legal entities

Four categories of legal entities are distinguished in size: micro, small, medium and large. A legal entity falls into a category when two of the three criteria are met for 2 consecutive financial years. Legal entities belonging to the large category are (among other things) required by law to have an annual audit.

Three size criteria

The three criteria used to determine whether a legal entity is micro, small, medium or large are:

• the balance sheet total;
• net sales;
• the number of employees.

The criteria total assets and net turnover have been increased as an adjustment for inflation. The correlation table below explains the changes. The criterion number of employees (48) was not changed.

The amended criteria will apply from the 2024 financial year. However, the firm may decide to apply them even before the 2023 financial year. If it is decided to withdraw the engagement for a statutory audit for the 2023 financial year, the firm must notify the AFM of this in writing without delay, with adequate justification.