As a result of the transposition of Directive 2014/56/EU of the European Parliament and of the Council of 16 April 2014 amending Directive 2006/43/EC on statutory audits of annual accounts and consolidated accounts (the “Directive”) by the Slovak Republic, the entirely new Act No. 423/2015 Coll. on Statutory Audit (the “Act”) has been adopted. Given the number of amendments that would be required to achieve compliance of legislation with the Directive, the legislator opted to adopt a completely new and amended set of rules.

Effective from July 17, 2016, the Act replaces the previous legislation and stipulates conditions for the performance of a statutory audit, the status and activities of statutory auditors and auditing companies, as well as conditions for the supervision of the performance of a statutory audit. The Act introduces a new definition of “statutory audit”, which is defined as an audit of individual or consolidated financial statements and annual reports pursuant to a special act or based on a decision of the accounting entity that does not have an obligation to audit financial statements and annual reports.