Client Profile and Experience
HLB Poland audits the financial statements of companies from various industry sectors, including IT, industrial manufacturing, transport, construction, real estate development, food and beverages, and trade. We have also completed dozens of projects related to auditing restructuring plans.
Financial Statements Audit – When Is It Mandatory?
Polish law distinguishes two groups of entities subject to mandatory audit of financial statements. The first group is always subject to audit — regardless of the company's size or revenue level. The second becomes subject to this obligation upon exceeding certain statutory thresholds. In practice, an increasing number of mid-sized companies discover this obligation only at year-end closing.
Three criteria for limited liability companies and partnerships:Meeting at least 2 out of 3 criteria = mandatory financial audit
Importantly, the legislator does not require all three criteria to be met simultaneously. Exceeding just two of them is sufficient — even with relatively low employment but high revenue and assets. The thresholds are expressed in euros and converted at the NBP exchange rate on the last day of the financial year, which means that a change in the exchange rate may trigger the audit obligation even with stable financial results.
Entities ALWAYS subject to mandatory audit:→ These entities are subject to mandatory audit regardless of the size of their operations, revenue or number of employees.
Scope of Audit and Review Services
HLB Poland member firms perform comprehensive audit and review services for financial statements — from mandatory statutory audits and IFRS engagements, through audits of EU-funded projects and IT systems audits, to specialised services required by the Commercial Companies Code.
Statutory Audit — Polish Accounting Standards and IFRS
We perform audits of individual and consolidated financial statements prepared in accordance with the Accounting Act and International Financial Reporting Standards (IFRS).
- audit of individual financial statements
- audit of consolidated financial statements
- audit of financial statements in accordance with international standards
- audit of financial statements of financial institutions
- audit of companies listed on the Warsaw Stock Exchange
- audit of entities operating in special economic zones
- audit of state-owned companies and foundations
- audit of restructuring plans
IFRS Reporting and Advisory
For companies preparing financial statements under IFRS or in the process of transitioning to these standards, we offer: IFRS implementation projects, expert consultations and advisory, professional opinions and accounting interpretations, as well as support during the transition to IFRS reporting.
We also prepare financial statements and reporting packages compliant with the Accounting Act, IFRS, German and US regulations, as well as consolidation packages prepared according to the parent company's instructions.
Audits of EU-Funded Projects
We verify the settlement of projects co-financed by the European Union. We examine the project's compliance with the grant agreement, confirm the eligibility of expenditures, and verify the correctness and completeness of the required documentation. The audit deliverable is a report containing certification of the settlement of funds received.
IT Systems Audit
IT systems verification primarily covers:
- data entry — access rights and validation procedures
- data processing — processing tests and change authorisation
- generated information and reports, and the security of their storage
The IT systems audit deliverable is a report discussing the scope of work performed, audit findings, and recommendations for improving the IT control environment.
Internal Audit
Our internal audit services include independent verification and advisory aimed at improving operations in the areas of risk management, internal control environment, and governance processes. The scope includes, among others:
- verification and assessment of financial and operational information
- operational efficiency review
- compliance review with legal and contractual obligations
- review of the control environment and fraud prevention system
- risk mapping and ad hoc risk reporting
- reviews under the Sarbanes-Oxley Act and similar regulations
Assurance Services under the Commercial Companies Code
We offer assurance services required by the Commercial Companies Code:
- examination of joint-stock company articles of association
- examination of merger, division and transformation plans
- valuation of minority shares in squeeze-out transactions
What Does the Auditor Verify During the Financial Statements Audit?
The scope of the audit depends on the size and profile of the company, as well as the applicable standards — national accounting principles or IFRS. From the management's perspective, the problem rarely stems from a single accounting error. Most often, the cause is a combination of: insufficient quality of source data, ambiguous accounting policies within the organisation, limited information flow between departments, and starting year-end closing procedures too late.
Completeness and quality of supporting documentation
The reliability of financial data depends on complete, well-evidenced documentation — organised in a clear structure with approval trails for key assumptions.
Recognition and valuation of key balance sheet items
Including fixed assets and intangibles, inventory, financial instruments, and the correct application of valuation policies.
Revenue and cost recognition — cut-off
Auditors verify whether revenue recognition criteria are met and whether all costs relating to the audited year are recorded in the correct period.
Provisions and accounting estimates
Impairment triggers, employee benefit provisions, accruals and deferred tax — all requiring management-approved assumptions and formal documentation.
Disclosures in the notes to the financial statements
The notes are an integral part of the financial statements. Missing or incomplete disclosures — on related parties, estimates, or financial instruments — are among the most common audit findings.
Internal controls affecting financial reporting
Information flow between departments, authorisation procedures and the control environment — in particular, the timely delivery of information on key business events.
Read more: Financial Audit – Common Issues in Auditing Financial Statements →
Frequently Asked Questions — Financial Audit in Poland
A financial audit, also referred to as the examination of financial statements, is a process conducted by an independent statutory auditor, the purpose of which is to verify whether the financial statements have been prepared in accordance with applicable regulations and adopted accounting policies. The result of the audit is the auditor’s opinion, which enhances the credibility of financial data for banks, investors and business partners.
A limited liability company is subject to mandatory audit if in the preceding year it met at least two of the following three criteria: average annual employment of at least 50 FTEs, total balance sheet assets of at least EUR 3,125,000, net revenue from sales of at least EUR 6,250,000. Meeting two of the three conditions makes the company’s audit mandatory.
Yes. All joint-stock companies are subject to mandatory audit of financial statements regardless of their size, revenue or number of employees — both companies listed on the WSE and private joint-stock companies not listed on the stock exchange.
The agreement with an audit firm should be concluded before the end of the financial year to which the audit relates. The auditor is selected by the body approving the financial statements — usually the shareholders’ meeting or the general meeting of shareholders — not by the company’s management board. Concluding the agreement after the end of the year may be challenged.
Failure to audit the financial statements may result in: financial penalties, criminal liability of the entity’s manager, difficulties with timely filing of documents with the National Court Register (KRS), and loss of credibility with banks, investors and business partners. In many cases, the costs of not having an audit prove to be significantly higher than the cost of the audit itself.
Yes. HLB Poland member firms audit financial statements prepared under both Polish accounting standards and International Financial Reporting Standards (IFRS). We also offer IFRS implementation projects, expert consultations and support during the transition to IFRS reporting.
Yes. We verify the settlement of projects co-financed by EU funds — we examine compliance with the grant agreement, confirm the eligibility of expenditures and verify the completeness of documentation. The audit deliverable is a report containing certification of the settlement of funds received.
An IT systems audit covers the verification of: data entry (access rights, validation procedures), data processing (processing tests, change authorisation), and the security of generated reports and stored information. The deliverable is a report discussing the scope of work, findings and recommendations for improving the IT control environment.
We offer assurance services required by the Commercial Companies Code: examination of joint-stock company articles of association, examination of merger and division plans, and valuation of minority shares in squeeze-out transactions.
The most predictable financial audit is one where the company has a year-end closing schedule with clear deadlines and area owners: inventories, fixed assets, revenue, provisions, taxes, notes. It is worth ensuring the completeness of documentation, conducting an internal review of risk areas before the audit, and maintaining efficient information flow between departments — particularly the timely reporting of key business events to the finance department.
Contact an Audit Partner
Whether you need to fulfil a statutory obligation, commission an EU project audit, or seek IFRS advisory — our audit partners are ready to discuss your needs.
