Assonime and new limits for internal control according to article no. 2477 Civil Code: the first financial year for auditing

With Case Study no. 1/2020 published on 27th January 2020, Association of Joint-Stock Companies – Assonime recalled that the new Code of Company Crisis and Insolvency and D.L. no. 32/2019 set up some amendments on article no. 2477 of Civil Code, modifying the limits for adopting internal control or auditors for limited company.

For companies already set up on 16th March 2019 the deadline to fulfill this duty was due on 16th December 2019.

With the entry into force of these regulatory changes, it was important to define the first fiscal year to subject to auditing.

According to the deadline for the appointment and specific features of the statutory auditing activity, Assonime considered that it will must concern the first financial year after designation, that is, from 1st January to 31st December 2020. In any case, the audit assignment will must last for three years (from 2020 to 2022) and will expire on the date of the Shareholders’ Meeting called to approve the financial statements for the third year.

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