Statutory Audit Requirement in Cambodia
The following types of business entities are obligated to be independently audited for each financial period in accordance with the relevant laws and regulations of Cambodia.
- Public enterprises.
- Enterprises with public accountabilities, for example, banks insurances and those that have debt instruments traded in the domestic or international stock market.
- Qualified Investment Projects registered with the Council for the Development of Cambodia in accordance with the Law on Investment.
- Enterprises that meet at least two of the three following criteria:
(1) having annual turnover of at least KHR4 billion (around USD1 million),
(2) having total assets of at least KHR3 billion (around USD750,000), and
(3) having at least 100 employees (based on the average number of employees during the year).
Non-profit organizations shall be audited by an independent auditor annually as well if they meet the following criteria:
- having annual expenses of at least KHR2 billion (around USD500,000); and
- having at least 20 employees (based on the average number of employees during the year).
Th above business entities that are obligated to be audited are required to do so for a minimum of three consecutive years even if they are no longer fulfill the criteria. If a business entity obliged to conduct independent audit ceases its business activities or operation within 12 consecutive months after the closing date of the previous accounting period, it may apply to the National Accounting Council of Cambodia for audit exemption.
The issuance of the independent audit report shall be completed within six months from the closing date of the accounting period. In case of failure, the business entity may apply to the National Accounting Council of Cambodia for extension and provide an appropriate explanation.
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