Who are required to have a statutory auditor in 2018?

For 2018, companies that have gross assets as of December 31, 2017 that are equal to or greater than $3,688,585,000 (5,000 smmlv) and/or have gross revenues as of December 31, 2017 that are equal to or greater than $2,213,151,000 (3,000 smmlv), must have a statutory auditor.

Article 203 of the Code of Commerce generally establishes the obligation to have a statutory auditor in joint stock companies, branches of foreign companies and companies that voluntarily so provide, provided that the decision is made by partners representing at least 20% of the capital and who are not part of the management of the entity.

Now, in accordance with the provisions of paragraph 2 of Article 13 of Law 43 of 1990, in the event that a commercial company, regardless of its nature, has gross assets as of December 31, 2017 that are equal to or greater than $3,688,585,000 (5,000 smmlv) and/or has gross revenues as of December 31, 2017 that are equal to or greater than $2,213,151,000 (3,000 smmlv); it must have a statutory auditor for the year 2018, who must be elected by the board of partners or shareholders’ meeting.

The following are some of the entities that are required by law to have a statutory auditor:

– According to the provisions of Article 20 of Law 45 of 1990, financial institutions subject to the control and surveillance of the Superintendence of Finance.

– According to the provisions of Article 142 of Law 142 of 1994, the domiciliary public utilities companies that must be subject to the provisions of the Code of Commerce with respect to corporations.

– According to Joint Circular 122 SNS – 036 of the National Superintendence of Health and the Central Board of Accountants, the entities subject to the surveillance of the National Superintendence of Health.

– In accordance with Article 56 of Law 675 of 2001, commercial or mixed-use complexes.

– According to article 48 of Law 21 of 1982, family compensation funds.

– According to Article 16 of Law 363 of 1997, the financial and accounting control of livestock funds must be exercised by a statutory auditor.

– According to article 3 of Decree 1529 of 1990, foundations or institutions of common utility.

Information Assurance Standards

Now, regarding the knowledge of technical accounting standards and the application of assurance standards, apart from the code of ethics included in Law 43 of 1990 and the provisions set forth in the Code of Commerce, the provision of Article 3 of Decree 2132 of 2016 which modifies Article 1.2.1.2 of DUR 2420 of 2015, where Law 1314 of 2009 is regulated regarding the application of the Information Assurance Standards for Colombia, should not be disregarded. This decree mentions the obligation of the statutory auditor to apply these standards for entities that are classified in group 1 and group 2 that have more than $20,683,620,000 (30,000 smmlv) of assets or more than 200 workers. The entities that do not belong to group 1 and that voluntarily accepted to apply the International Standards for such group, will also be subject to the provisions of the mentioned article.

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Source: Actualícese