When are you required to have a statutory auditor in Colombia?
In accordance with Law 43 of 1990 of the Commercial Code, the statutory audit in Colombia is a mandatory service for all branches and corporations.
Those entities that own:
must have a statutory auditor elected by the shareholders’ meeting or assembly.- Gross assets as of December 31, 2023 equal to or greater than 5,800,000,000 Colombian pesos (approx. 1,260,000 EUR)
- Gross income as of December 31, 2023 equal to or greater than 3,480,000,000 Colombian pesos (approx. 750,000 EUR)
Even when the obligation is not met, it is advisable to have the statutory audit service in Colombia. This will help the company to elucidate improvement options in terms of financial, accounting, tax, legal, administrative, portfolio… aspects as well as to avoid incurring sanctions. In addition, the Commercial Code, in its article 203, establishes the obligation to have a statutory auditor in joint stock companies, branches of foreign companies.
Companies required to carry out the Statutory Audit in Colombia must appoint the maximum statutory auditor at the annual meeting, which must be held no later than March 31.
- According to current regulations, it is mandatory to have a statutory auditor for companies that, as of December 31, 2024, meet any of the following criteria:
- Gross assets equal to or greater than $6,500,000,000 Colombian pesos.
- Gross income equal to or greater than $3,900,000,000 Colombian pesos.
- A2M, a company of the UR GLOBAL group, emerges, which develops this service with the highest quality standards. Together with a team of experts, we have created an efficient process that guarantees regulatory compliance, provides transparency and provides the necessary support for management and decision-making in your company.
How do we perform the statutory audit service in Colombia?
The control exercised by the statutory audit office in Colombia over the economic entity is integral to all areas and operations of the company.
- Tax review. It entails the recalculation of the items, random sample review of the items subject to review, verification of rates and tariffs applied among others
- Review of the balance sheet
- Review of payrolls and social security forms
- Review of internal control processes and procedures and core business operations
- Circularization to control entities and social security organizations and tax entities to verify that no debts are presented (statements of account)
- Review of contracts (not of content, but of form)
- Contractual compliance and signature formalities
- If they contain harmful clauses
- Possible risks for the company
- Issuance of tax and internal control recommendations.
Our added value is related to the scope of the tax review, we get to the details of the figures, while other firms do a more analysis superficial and is limited to the crossing of figures with the Balance Sheet; reviews and recommendations of inventories or cost systems.
