Audit of Financial Statements
Every company incorporated in Malta is required to prepare a set of audited financial statements every year and file them at the Registry of Companies (ROC) within the Malta Financial Services Authority (MFSA). CSB Group provides clients with professional audit and assurance coordination of company audits. Our team liaises with trusted, reliable audit practitioners and audit firms, including all ‘Big Four’ audit firms.
Compliance with International Financial Reporting Standards (IFRSs)
These financial statements need to be compliant with International Financial Reporting Standards (IFRSs) as adopted by the EU. Certain companies that do not exceed certain thresholds can also have their financial statements prepared in accordance with General Accounting Principles for Small Entities (GAPSE). The audit of these financial statements is to be carried out by a qualified person holding the relevant warrant issued by the Maltese Accountancy Board and needs to be performed in accordance with International Standards on Auditing.
If a company is incorporated between 1st of January and 30th June, then a company would need to have its first set of audited financial statements covering from the incorporation date up to 31st December of that year. If a company is incorporated between 1st July and 31st December, then the company’s first audited financial statements will cover from 1st July of the incorporation year to 31st December of the following year. A company can also have its year end other than 31 December, but if this is not specified and the respective form filed at the Registry of Companies, the default will be 31 December.
Submission to the Registry of Companies
Subsequently, once the financial statements are approved by the directors and shareholders in general meeting (this needs to be done within 10 months from the accounting year end), the financial statements would need to be submitted and filed at the Registry of Companies. This would then need to be done not later than 42 days after the lapse of the 10 months from the accounting date. In the case of companies who have more than 90% of their business interests outside Malta, a Form U can be filed with the ROC, to obtain an extension for filing. If the latter is the case, the financial statements would then need to be submitted within 18 months from the accounting reference date.
Penalties for Late Approval
If these deadlines are not met, then penalties for the late approval of the financial statements (if the financial statements are approved later than 10 months from the accounting date) as well as penalties for the late filing of the financial statements (if the financial statements are filed later than 42 days after or later than the 18 months referred to previously) would be incurred. These penalties amount to a fixed amount of EUR 25 plus EUR 0.50c per day for each day the financial statements are late.
Coordination Process of Company Audits
The process is initiated by obtaining the necessary quotation/s for confirmation by our clients. Through our collaboration with very reliable audit firms in Malta, we secure very favourable and competitive rates for our clients. At the same time, we ensure utmost quality to our clients.
Following the appointment of the chosen audit firm, we will facilitate the process to ensure a smooth and efficient audit is carried out with minimum inconvenience to our clients. The auditor will receive timely and accurate management accounts together with all the supplementary information that is required during the course of the audit. We answer all the auditor’s queries, only going back to the client if there is the need, so that the audit is carried out on a timely basis, and the financial statements are filed within the stipulated deadlines.