Preparing for Your First Cyprus Audit: Checklist & What to Expect

If you’re facing your first Cyprus statutory audit, it’s normal to feel a little uncertain about what lies ahead. Every Cyprus-incorporated company must prepare financial statements under IFRS and, unless exempt as a small company, have them audited by a licensed Cyprus auditor.

The process doesn’t have to be stressful. With the right preparation, your audit can run smoothly and even add value to your business. Here’s what to expect and how to get ready.

1. Do You Need an Audit or a Review?

• All Cyprus-incorporated companies must undergo a statutory audit.
• Small companies may qualify for a review engagement exemption if they meet both criteria:
  • Annual turnover under €200,000
  • Total assets under €500,000
• A review engagement under ISRE 2400 provides limited assurance through inquiry and analytical procedures and can only be carried out by a licensed statutory auditor.

2. Audit Pricing in Cyprus

Audit fees depend on several factors, including the size and complexity of your company, the number of transactions, and the quality of your records. Smaller, straightforward businesses typically require less work, while larger or more complex entities naturally involve more.

The important point is transparency. You should always expect a clear proposal agreed upfront, with no hidden extras. At Nikita & Partners, our pricing is competitive and proportionate to the work involved, giving you clarity and fairness from the outset.

3. Choosing the Right Auditor

Selecting the right auditor is an important decision. Key things to look for include:

• Licensed status – only Cyprus-licensed statutory auditors can sign audits or reviews.
• Industry expertise – auditors familiar with your sector will understand the risks and common issues.
• IFRS knowledge – accurate application of accounting standards avoids problems with the tax department, regulators or investors.
• Responsiveness – timely communication makes the audit more efficient.
• Reputation and trust – look for ICPAC/ACCA monitoring results of the audit firm or testimonials that demonstrate reliability.

The right auditor won’t just sign your accounts — they’ll provide confidence, advice, and practical solutions for your business.

4. Key Documents You’ll Need

Having information ready from the start makes the biggest difference. Typical requests include:

• Trial balance and general ledger
• Bank statements and reconciliations
• Sales and purchase invoices, contracts
• Payroll and social insurance records
• Loan agreements and leases
• Fixed asset register and related invoices
• Tax filings (corporate tax, VAT, PAYE)
• Board and shareholder minutes
• Details of related party transactions

5. How Audit Planning Works

The planning stage sets the framework for the audit. For new clients, this includes onboarding and KYC checks, along with an engagement letter that clearly sets out responsibilities, scope, and fees.

Once that’s in place, auditors provide a request list of documents and clarify any additional requirements. Throughout this stage, questions may arise to ensure everything is properly understood before fieldwork begins.

Tip: Assign a main contact within your company to liaise with the audit team — it keeps communication efficient and helps avoid delays.

6. How Long Does a Cyprus Audit Take?

The timing of an audit can vary widely. It depends on factors such as the quality of financial records, the complexity of transactions, and how quickly information is provided.

To make the process predictable, you should agree the timeline and deadlines with your auditor before the audit begins. This ensures everyone is aligned from the start.

7. Tips for an Efficient Audit

• Organise early: keep reconciliations and registers up to date.
• Be transparent: let your auditors know about unusual transactions upfront.
• Clarify IFRS treatments early: things like leases, revenue recognition, or provisions.
• Assign responsibility: one staff member should coordinate with auditors.
• Stay responsive: prompt replies avoid delays and keep the process moving.

8. What You’ll Gain Beyond Compliance

An audit can do more than meet regulatory requirements. It can:

• Identify weaknesses in controls and opportunities to improve efficiency
• Highlight cost-saving measures or profitability drivers
• Provide reliable data for management decisions and strategy
• Strengthen your credibility with banks, investors, and stakeholders
• Improve governance and reduce risks, protecting your reputation

Final Thoughts

Your first audit in Cyprus doesn’t need to be daunting. With preparation, the right documents in place, and clear timelines agreed, the process can run smoothly — and even provide insights to help your business grow.

At Nikita & Partners, we combine technical expertise, IFRS experience, and partner-level involvement to ensure every audit is efficient, timely, and adds value.

Preparing for your first audit? Contact us for a tailored checklist and guidance to make the process as smooth as possible.