Mandatory Financial Audit 2024 — Criteria and Procedure in Romania

Statutory financial audit is mandatory in Romania for companies that exceed certain size thresholds. However, many companies in Ploiești and Prahova County do not check whether they fall under these criteria and risk sanctions from the Ministry of Finance. This article clarifies exactly who must be audited, how the procedure works, and what the real costs are.

Legal Framework — Law 162/2017 and Audit Thresholds

The obligation for financial audit is regulated by the Accounting Law 82/1991 (republished), Law 162/2017 on statutory audit, and OMFP 1802/2014 for public interest entities. According to European Directive 2013/34/EU, transposed into Romanian legislation, entities exceeding two of three size criteria in two consecutive years are required to undergo financial audit.

It is important to note that statutory audit can only be performed by financial auditors or audit firms that are CAFR members (Chamber of Financial Auditors of Romania). Accounting firms without CAFR authorization cannot perform statutory audit.

2024 Size Criteria

An entity is required to undergo financial audit if it exceeds, in two consecutive financial years, at least two of the following three criteria:

• Total assets: 17,500,000 RON (approximately 3.5 million EUR)
• Net turnover: 35,000,000 RON (approximately 7 million EUR)
• Average number of employees: 50 employees

Note: public interest entities (listed companies, banks, insurance companies, pension funds) are required to be audited regardless of criteria. Also, entities receiving EU funds often have an audit obligation regardless of size, as per the financing contract.

Audit Procedure — Steps and Required Documents

1. Engaging the auditor — selecting a CAFR audit firm, signing the engagement letter with deadlines and fees
2. Audit planning — the auditor assesses risks, sets materiality and the testing plan
3. Evidence collection — the auditor examines documents: trial balances, invoices, contracts, bank statements, inventory
4. Substantive tests — detailed verifications on significant balances (receivables, payables, inventory, fixed assets)
5. Audit report — the auditor's opinion: unqualified, qualified, adverse, or disclaimer
6. Filing — the report is filed with ONRC together with the annual financial statements

How Much a Financial Audit Costs and What Affects the Price

The cost of a financial audit varies significantly: from 3,000-5,000 EUR for a medium-sized company with simple operations, to 20,000+ EUR for complex entities with multiple locations, international transactions, or EU funds. Factors affecting the price: number of transactions, business complexity, quality of accounting documentation, existence of an internal control system, number of locations.

Why Choose a CAFR-Authorized Auditor

A CAFR-authorized auditor complies with International Standards on Auditing (ISA), has a continuous training obligation, and is subject to the Chamber's quality control. At Geseidl Consulting Group, our audit and tax consulting team provides integrated services: the audit is correlated with tax optimization, not just a formality. With over 17 years of experience in Prahova, we know the local specifics and offer realistic timelines.

Need professional financial audit? The Geseidl Consulting Group team, CECCAR Prahova leader for 18 consecutive years, is ready to help. Discover our services or contact us for a free consultation.