Investigation into Dozens of Complaints Against Audit Firms in Cyprus

The Public Audit Oversight Authority (ΑΔΕΕλΕπ) is investigating dozens of complaints concerning audit firms in Cyprus. The Director-General of the Authority, Panos Prodromitis, informed the Parliamentary Committee on Financial Affairs about the ongoing investigations.

Mr. Prodromitis stated that the complaints originate from inspections by ΑΔΕΕλΕπ and the Association of Certified Accountants of Cyprus (ΣΕΛΚ). The number of cases is significant, with some being at the disciplinary committee stage, others under investigation, and for others, the appointment of an investigating officer is pending.

The Authority's budget for 2026 is €1.9 million, at the same level as in 2025. Funding comes from the Republic of Cyprus (20%) and recognized Audit Bodies (80%).

The signing of a memorandum of understanding with the corresponding US authority, which allows Cypriot companies to raise capital from America, was significant. In 2025, a disciplinary sanction was imposed on an audit firm for the first time, with a fine of €60,000.

Furthermore, the amendment of the Auditors Law for a faster disciplinary procedure and simplification of audit standards is under consultation.

In March, the International Forum of Independent Audit Regulators (IFIAR) Inspection Workshop will be held in Limassol.