Mandatory audit is not just a formality — it is a legal requirement in the Republic of Moldova for certain categories of companies. It is necessary to confirm the accuracy of financial statements and demonstrates business transparency to the government, partners, and investors. In this article, we will explain who is subject to mandatory audit, what deadlines are set, and how to prepare for the audit to ensure a smooth and problem-free process.
What Is Mandatory Audit in Moldova?
A mandatory audit is an independent examination of a company’s financial statements, conducted by a licensed auditor, with the purpose of verifying their accuracy and compliance with applicable legislation. In Moldova, mandatory audits are regulated by Law No. 271/2017 on Accounting and Financial Reporting.
An audit helps identify discrepancies in accounting, increases investor confidence, and reduces the risk of tax inspections. It is important to distinguish between mandatory and voluntary (initiative) audits: the former is legally required, while the latter is a proactive decision by the company aimed at internal evaluation.
During a mandatory audit, the following are typically reviewed: balance sheet, income statement, cash flow statement, explanatory notes, and tax calculations. Based on the results, an audit report is issued, which can be unqualified, qualified (with reservations), or adverse.
Who Is Required to Undergo a Mandatory Audit?
According to the legislation of the Republic of Moldova, companies that meet certain criteria are required to undergo a mandatory audit. The main criteria include:
- annual revenue exceeding 35 million MDL;
- total assets worth more than 18 million MDL;
- more than 50 employees;
- status of a joint-stock company, regardless of other factors;
- public enterprises and institutions;
- residents of Moldova IT Park, under specific conditions.
Special attention should be paid to residents of Moldova IT Park. If they exceed the established financial or staffing thresholds, a mandatory audit becomes a legal obligation. Even if a company does not fall under these criteria, an audit may still be required by investors, banks, or partners.
Companies that do not meet the thresholds may be exempt from mandatory audit, but conducting one voluntarily can still be beneficial as part of internal control or when preparing to attract investment.
When and Within What Timeframe Is the Audit Conducted?
The timing of the mandatory audit is strictly regulated. Typically, the financial audit is conducted annually, based on the results of the previous fiscal year. The audit must be completed before submitting the annual financial report to the relevant authorities.
In Moldova, the deadline for submitting financial statements for companies subject to mandatory audit is April 30 of the following year. For companies not subject to mandatory audit, the deadline is May 30.
However, preparation should not be delayed until spring. The optimal time to start working with an auditor is December to January. This allows for identifying and correcting potential errors before the final report is prepared, helping avoid issues such as a qualified opinion or detected violations.
Early preparation enables a company not only to pass the audit on time but also to receive useful recommendations to improve accounting practices — still within the current reporting period.
Stages of the Mandatory Audit
The mandatory audit procedure includes several sequential stages. Understanding this structure helps companies prepare in advance and work more effectively with the audit firm.
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Preliminary Consultation
At this stage, the auditor familiarizes themselves with the company’s activities, legal status, and financial indicators. The objectives of the audit, scope of work, and deadlines are discussed. -
Risk Assessment and Planning
The auditor conducts a preliminary review of documentation and business processes, identifies potential risk areas, and prepares a tailored audit plan based on the specifics of the company. -
Data Collection and Verification
The company provides all necessary accounting and tax documentation. The auditor checks the accuracy of entries, compliance with legal standards, and availability of supporting documents. -
Preparation of the Audit Report
Based on the review, the auditor issues a report evaluating the reliability of the financial statements, including any comments or recommendations if necessary. -
Post-Audit Support
Some companies request additional consultations or assistance in correcting identified issues. This enhances internal control and helps prepare for future audits.
Practical Tips: How to Prepare
To ensure a smooth mandatory audit, companies should begin internal preparation in advance. This helps reduce the duration of the audit, avoid penalties, and obtain a clean audit opinion without delays.
Here are the key steps:
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Prepare a complete set of documents
Gather accounting registers, primary documents (invoices, delivery notes, acts), bank statements, contracts, tax returns, and calculations. -
Conduct an internal review
Ensure that all transactions are properly recorded. Pay special attention to documents for large or unusual transactions. -
Inventory assets and liabilities
Auditors focus on the accuracy of assets, warehouse balances, and accounts receivable. Make sure this data is updated in advance. -
Verify activity codes (CAEM)
This is particularly important for IT Park residents, where mismatches in registered activities can lead to tax adjustments and denial of benefits. -
Implement recommendations from the previous audit
If a previous audit was conducted, ensure that all comments were addressed. Recurring issues may be seen as systemic and increase audit risk. -
Appoint a responsible person
Assign a staff member or external consultant to coordinate the process, respond to auditor requests, and streamline communication.
Proper preparation is the key to a successful and valuable audit experience for your company.
Why Audit Is More Than Just Compliance
Many view mandatory audit as a formal obligation. In reality, it provides much more than simple compliance with the law.
1. Builds trust with investors and partners
Verified financial statements are a strong signal to investors, banks, and potential partners. They demonstrate transparency and business reliability.
2. Protects against tax and legal risks
Auditors help detect accounting and tax errors before regulators do, helping companies avoid fines or account freezes.
3. Improves internal business processes
The audit can reveal inefficiencies, overlapping functions, and accounting gaps. Auditor recommendations help strengthen internal control and optimize financial management.
4. Prepares for scaling and raising capital
Businesses planning to expand, enter new markets, or sell shares benefit from having clean and audited financials.
5. Enhances company reputation
Audited reports signal a responsible business approach, increasing the company’s credibility with clients, contractors, and regulators.
In short, audit is not just a check — it’s an investment in growth and long-term sustainability.
Common Mistakes During the Audit Process
Even companies with solid accounting practices can face challenges during a mandatory audit. Below are common mistakes to avoid:
1. Mismatch between actual activities and CAEM codes
This is especially critical for IT Park residents. If the company’s activities don’t match the declared codes, it may result in losing tax benefits and receiving penalties from regulatory bodies.
2. Missing primary documents
Even if transactions are recorded correctly, the absence of supporting documents (financial or contractual) may raise concerns from the auditor.
3. Manual accounting and lack of automation
Using Excel or non-standard tools increases the risk of errors. It complicates the audit process and delays information retrieval.
4. Late preparation for the audit
Starting audit preparation just days before the deadline leads to higher chances of errors, incomplete data, and submission delays.
5. Ignoring recommendations from the previous audit
Recurring mistakes may be seen as negligence or systemic issues, affecting the auditor’s final opinion.
6. Lack of qualification of the responsible employee
Without experience in audit procedures, one may miscommunicate, fail to provide necessary information, or miss critical details.
These mistakes can be avoided by preparing in advance, assigning a qualified coordinator, and treating the auditor as a partner rather than an inspector.
What Is a Voluntary Audit and Why It Matters
Unlike a mandatory audit, a voluntary audit is initiated by the company itself — without being required by law. It is a powerful internal diagnostic tool that provides an independent view of the company's financial health.
When and why companies request a voluntary audit:
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Preparing for investment or financing
Auditing financial statements and identifying weak spots in advance helps improve credibility with investors and banks. -
Change in ownership or management
A voluntary audit gives new management a clear, objective view of the company’s current situation. -
Assessing accounting department performance
Auditors can detect inconsistencies, inaccuracies, or potential tax risks that may not be visible from within. -
Business restructuring
During mergers, spin-offs, or liquidations, audits provide solid data for informed decision-making. -
Implementing new accounting systems
Before switching to ERP or other software, it’s crucial to ensure data accuracy — otherwise, automation could amplify existing errors.
Voluntary audits not only improve accounting quality but also enhance financial discipline. It’s a step toward mature business management, even when not legally required.
Frequently Asked Questions (FAQ)
When is an audit mandatory in Moldova?
An audit is mandatory for companies exceeding thresholds in revenue, assets, or staff, as well as for joint-stock companies, public enterprises, and IT Park residents meeting specific criteria.
How to know if my company needs a mandatory audit?
Compare your company’s metrics with the thresholds: MDL 35M in revenue, MDL 18M in assets, or more than 50 employees. Exceeding any of these requires an audit.
What does a mandatory audit include?
Auditors verify financial reports, policies, documentation, tax filings, and legal compliance — aiming to confirm accuracy and transparency.
When should the audit take place?
It’s done annually after the fiscal year ends. The audit should be completed before submitting the financial report — by April 30.
How long does a mandatory audit take?
On average, 1 to 4 weeks — depending on documentation and company readiness. Early preparation speeds things up.
Can an audit be done remotely?
Yes. Modern firms like IntelCont offer secure online audits with full support and document exchange.
What’s the difference between mandatory and voluntary audit?
Mandatory audit is legally required; voluntary audit is a proactive business decision — often done for internal control or investment readiness.
What if the audit uncovers issues?
Fix them quickly. Firms like IntelCont also help with corrections and offer recommendations for improvement.
Confidently Pass Your Audit with IntelCont
IntelCont provides mandatory and voluntary audit services across Moldova. We operate under license, strictly follow legal standards, and support you throughout — from consultation to final report and implementation of recommendations.
Why choose us:
- Experience with all business sizes — from SMEs to IT Park residents
- Individual approach to each client
- Clear terms and fixed pricing
- Remote support and secure document sharing
If you're unsure whether your company needs a mandatory audit or wish to run an internal check before inspections — contact us. We'll assess your risks, advise on the best approach, and help you pass the audit stress-free.
Ready to pass your audit with confidence?
Book a free consultation — our experts will get in touch and answer all your questions.
