Did you know that, according to Legislative Decree 14/2019, any limited liability company that exceeds, or has exceeded for two consecutive years, 20 employees, a turnover of €4 million, and total balance sheet assets of €4 million, is obliged to carry out a statutory audit of its financial statements?
Legislative Decree no. 14/2019 implemented law no. 155 of 19 October 2017, by which the Italian Parliament instructed the Government to reform the regulations related to companies in crisis and insolvency, with significant consequences from a corporate and management point of view.
Specifically, the legislative changes established a major reduction in the limits governing the mandatory appointment of a board of statutory auditors for limited liability companies:
According to the law, any company that exceeds at least one of these three limits for two subsequent financial years is required to engage a statutory auditor, who cannot be connected in any way with the professionals who are already entrusted with the accounting and commercial aspects of the company. This obligation will only lapse if none of the new limits are exceeded for three consecutive financial years.
It is therefore incredibly important that each company chooses the right statutory auditor, who knows how to provide the right level of reliability and is up to date with the latest sector regulations.