Auditing

We provide auditing services to enable certification for financial companies and associations when requested or required by law.

What is auditing?
An audit is the opinion on the reliability of financial information and operational suitability based on a company’s financial statements. An audit is not performed in the annual statement or tax return; it is the role of the Accountant.

What is the responsibility of the auditor?
The auditor's responsibility is limited to the opinion he gives on statements, which subject him to the limited liability of the reservation.

What is the responsibility of the board?
The board is responsible for the financial statement of the company and presents financial statements. The board hires a manager who is responsible for daily operations.

When is it required to elect a chartered accountant (Icelandic review)?

a.When companies exceed two of the following size limit rules for two consecutive years, at least one auditor or auditing firm shall be appointed:
  1. Assets of more than ISK 120,000,000 or EUR 750,000.
  2. Income amounting to ISK 240,000,000 or EUR 1,500,000.
  3. Number of employees in the fiscal year is at least 50 or more.
b.In companies where there is no restriction on trading in shares, at least one auditor shall be appointed.

c.Cooperatives with B-division capital shall elect at least one auditor.

d.Organizations associated with the public interest:
  1. A legal entity that is domiciled in Iceland and has its securities listed on a regulated market in a country within the European Economic Area, a member of EFTA or the Faroe Islands.
  2. Pension fund that has ratified the license.
  3. Institution as defined in the Act on Financial Undertakings.
  4. Company authorized to operate an insurance business in this country as an insurance business.
Other reasons for appointing legal auditors:
  1. At the request of the board.
  2. At the request of creditors.
  3. At the request of stakeholders.
  4. At the request of customers.
  5. Other reasons.