On 9 June 2022, the House of Representatives passed amending Law No.2 of 2022, to the Cyprus Companies Law, in an effort to simplify the procedure of auditing the financial statements of small and medium-sized companies. Companies of which the net turnover and total value of assets do not exceed €200,000 and €500,000 respectively at the balance sheet date for at least two consecutive years may submit their financial statements for review only by a statutory auditor . The new provisions of the Law are not applicable to companies that are required to prepare consolidated financial statements and companies which are regulated and supervised by the Central Bank of Cyprus, the Cyprus Securities and Exchange Commission and the Superintendent of Insurance and others.

The above amendment is applicable from 1 January 2023 and the provisions apply to the to the financial statements of companies ending 31 December 2022 or any other subsequent date.