In accordance with article 16 of the Law on Corporate Accounts, Their Audits, and Accounting Profession, all enterprises, natural persons and legal entities with Khmer or foreign nationality domiciled in the Kingdom of Cambodia, that meet two of the following three criteria, have an obligation to submit their annual statements for audit by independent auditors registered in the statutory auditor list of the Kampuchea Institute of Certified Public Accountants and Auditors (KICPAA):
Criteria 1: having an annual turnover of 3,000,000,000 Riels (three billion Riels) and above;
Criteria 2: having total assets of 2,000,000,000 Riels (two billion Riels) and above, based on the average values of assets held during the year subject to audit;·
Criteria 3: having employees of 100 persons (one hundred) and above, based on the average number of employees employed during the year subject to audit.
This law has been around for some time but is to be enforced from 2021. This will result in a significant increase in audit work in Cambodia.
The financial statements must be audited by auditors registered in the statutory auditor list maintained by the KICPAA.
Qualified Investment Projects
Qualified investment projects registered by the Council for the Development of Cambodia in accordance with the Law on Investment have an obligation to submit their financial statements to independent auditors registered in the statutory auditor list of the KICPAA.
Enterprises may apply to the Ministry of Economy and Finance for exemption from the requirement to:
Prepare financial statements in accordance with Cambodian Accounting Standards (CASs); and
Be subject to audit by the independent auditors.If the enterprise has had no commercial activity for a period of greater than 12 months, subject to the previous year of audit, an exemption will apply.
All audits will be carried out for the year ended 31 December, or a period ending other than 31 December with the approval of the Ministry of Economy and Finance. The first year of audit is to be from December 2007, or the first year after 31 December 2007 if the financial year end differs from 31 December. The audit must be completed within six months of the year, following the year subject to audit.