Audit and assurance

Audit of the financial statements

We audit and inspect financial statements according to International Standards on Auditing (ISA). We work with statements prepared according to the laws and accepted standards of the Republic of Latvia or according to the International Financial Reporting Standards (IFRS).

The goal of an audit is to carry out an independent examination of a company’s financial statements. Our task is to assure that financial statements reflect true and fair view of the company's financial position and financial performance in order to confirm their reliability. The main task of the Orients Audit & Finance audit team is to provide potential users of the audited financial information with a sense of security about the applicability of this information during the decision making process.

The law of Republic of Latvia about the financial statements and consolidated financial statements according to the Law on Audit Services requires the statutory audit or review by a sworn auditor, if the indicators of a particular company for two consecutive years, but for a newly established company in the first reporting year on the balance sheet date, exceed at least two of the following three financial indicators:

for audit:

• net turnover – EUR 2 000,000
• total assets – EUR 1 000,000
• average number of people employed – 50,

for review:

• net turnover – EUR 1 000,000
• total assets – EUR 500,000
• average number of people employed – 25.

The statutory audit must also be carried out for:

• A concern's parent companies
• State and municipal companies (100%), its subsidiaries
• Companies which recognize, assess and classify assets in accordance with International Financial Reporting Standards.

The statutory audit and consolidation must be performed for:

• Medium and large companies / concerns
• Companies, whose securities are listed on the stock exchange.

Audit of the sustainability report

Latvia has adopted the Law on Disclosure of Sustainable Information (hereinafter – Law), transposing the EU Corporate Sustainability Reporting Directive (CSRD) to the legislative level of Latvia. The accepted legal package also includes amendments to the Law on Audit Services, which provides that the audit of the sustainability report in Latvia will be conducted by sworn auditors, to whom the Latvian association of certified auditors (LACA) will issue a separate mandate in accordance with the required level of knowledge. In Latvia it is also possible that two different sworn auditors can audit the financial statements and the sustainable report within the framework of one annual report.

The Law provides the requirement to audit the digital format of the sustainability report on the compliance with the European single electronic format (ESEF), and correspondence of the sustainable report human-readable content with the machine-readable iXBRL format based on ESRS Set 1 XBRL Taxonomy.

The law provides that the auditors, in connection with the audit of the report on sustainable development, will carry out a limited assurance engagement in accordance with the International Standard for Assurance Engagements No. 3000, which will indicate whether the auditor was informed of the circumstances based on the procedures performed and the evidence obtained. which may cause the auditor to decide that the sustainability information is not prepared or presented reliably in all essential respects in accordance with the applicable criteria.

Apply for the audit of the ESRS sustainability report and audit of the ESEF format by writing to us at info@oriens.lv.