SARAS issues notice to auditors/audit firms

In accordance with a number of amendments made to the Law of Georgia on Accounting, Reporting and Auditing, and to the Rule for Monitoring the Quality Management System approved by Order No. N-9 of 12 July 2017 of the Head of SARAS, we would like to remind you that: 

From 1 January 2025, an engagement partner will not be permitted to be an engagement partner in more than one audit firm or to provide audit services individually while being an engagement partner in an audit firm.

Accordingly, auditors who are registered as engagement partners in more than one audit firm or who provide audit services individually while being an engagement partner in an audit firm are required to notify SARAS in writing and/or electronically (https://saras.gov.ge/ms/) at any time before 1 January 2025, within 5 working days from the date of the change, in which audit firm they will remain/become an engagement partner or if they intend to provide audit services only individually;

• An auditor/audit firm that has not undergone monitoring or that has been designated by SARAS as a non-mandatory auditor/audit firm is required to submit information electronically to SARAS in the event that it enters into a financial statement audit engagement with an entity of any size category from May 21, 2024 (see the above-mentioned Rule for detailed information on the deadlines for submitting information and the information to be submitted). The information to be submitted must include legal relationships arising from May 21, 2024. In addition, we would like to remind you that until the above-mentioned date, auditors/audit firms that had not undergone monitoring or that had been assigned a final assessment of the fifth category as a result of the last monitoring were also required to submit information on the audit of financial statements performed for entities in the first, second and third size categories;
• As of 31 May 2024, auditors/audit firms with the status of “without category” (which have been designated as mandatory auditors/audit firms) will remain mandatory auditors/audit firms (until the monitoring by SARAS is carried out and the corresponding results are published) if no later than 1 January 2025, they submit to SARAS information on at least 2 financial statement audit engagements completed (finalized) in the period after the law came into force (from 25 June 2016), and if they do not have at least 2 financial statement audit engagements completed (finalized) in the period after the law came into force and/or they do not submit to SARAS information on at least 2 financial statement audit engagements completed (finalized) in the period after the law came into force, they will be designated as non-mandatory auditors/audit firms (subject to the relevant authority/restrictions set out in this Rule) from 1 January 2025. In this case, when designating an auditor/audit firm as a provider of non-mandatory audit, SARAS is authorized to prevent the auditor/audit firm from completing the audit service(s) subject to a mandatory audit to be performed on the basis of the current engagement.

   

  Taking this into account, as of 31 May 2024, auditors/audit firms with the status of "without category" (which have been designated as mandatory auditors/audit firms) must, no later than 1 January 2025, provide SARAS, as an official statement in written and/or electronic form (https://saras.gov.ge/ms/), with information on at least 2 financial statement audit engagements completed (finalized) after the enactment of the law, if any.

  To submit information on the financial statements audit engagements that are completed (finalized), you may use given files provided for auditors and audit firms. If you use these files, please submit them together with the relevant statement both in signed form (scanned) and electronically - in the form of an Excel file.

  If you have any questions regarding the amendments made to the Law of Georgia on Accounting, Reporting and Auditing, and to the Rule for Monitoring the Quality Management System approved by Order No. N-9 of 12 July 2017 of the Head of SARAS, you may contact us electronically (https://saras.gov.ge/ms/), or call our hotline.