Best Accounting & Auditing Lawyers in Kaunas

About Accounting & Auditing Law in Kaunas, Republic of Lithuania

Accounting and auditing are essential aspects of business operations in Kaunas, Republic of Lithuania. The legal framework is shaped by both national law and European Union directives, establishing clear requirements for accurate record-keeping, transparency, and reporting. Businesses of all sizes must comply with these regulations to ensure legal operations and maintain public and investor trust. Kaunas, being a significant economic hub in Lithuania, is home to numerous firms and professionals who specialize in accounting and auditing law, ready to assist individuals and businesses in meeting their legal obligations.

Why You May Need a Lawyer

Navigating the complexities of accounting and auditing regulations can be challenging, especially for those unfamiliar with legal requirements in Lithuania. Common situations where legal help might be necessary include:

• Starting a new business and establishing proper accounting systems
• Facing an audit by Lithuanian tax authorities
• Dealing with allegations of financial misreporting or fraud
• Ensuring compliance with updated accounting standards and laws
• Resolving disputes with partners, shareholders, or tax authorities
• Understanding cross-border accounting rules for international business
• Managing mergers, acquisitions, or corporate restructuring
• Pursuing or defending claims related to accounting malpractice

A lawyer with expertise in accounting and auditing law can help safeguard your interests, ensure compliance, and resolve any legal issues efficiently.

Local Laws Overview

In Kaunas, as throughout Lithuania, the primary legal acts governing accounting and auditing include the Republic of Lithuania Law on Accounting and the Law on Audit. These laws set out the requirements for the preparation and submission of financial statements, establish the rights and responsibilities of auditors, and mandate specific procedures for reporting and documentation.

Key aspects of local laws relevant to accounting and auditing are:

• All legal entities must maintain accurate and up-to-date accounting books in the Lithuanian language and in accordance with national and EU standards.
• Financial statements must be prepared annually and submitted to the Register of Legal Entities.
• Certain companies, such as public interest entities or those exceeding specific financial thresholds, are subject to mandatory audits by certified auditors.
• Auditors must operate independently and adhere to both national and international professional standards.
• Failure to follow legal requirements can result in administrative or criminal liability, including fines or other penalties.

Understanding and complying with these local laws is crucial for individuals and businesses in Kaunas to avoid legal complications and promote transparency.

Frequently Asked Questions

What types of companies are required to have their financial statements audited in Lithuania?

Generally, public interest entities, listed companies, and firms above certain financial thresholds are required to conduct audits. Exact requirements depend on company size and activity.

Can financial records be kept in a foreign language?

Accounting documents and records must be kept in Lithuanian, though supporting documents in other languages can accompany them if translated upon request.

What is the deadline for submitting annual financial statements?

Financial statements must typically be submitted within four months after the end of the financial year, though this can vary based on company type.

Who can conduct audits in Kaunas?

Only certified public auditors registered with the Authority of Audit, Accounting, Property Valuation and Insolvency Management under the Ministry of Finance can conduct statutory audits.

What are the consequences of not complying with accounting regulations?

Non-compliance can lead to fines, administrative penalties, and, in severe cases, criminal charges or business restrictions.

Is it mandatory to use accounting software?

There is no legal requirement to use specific software, but accounting systems must meet legal standards and ensure data accuracy and security.

How can a company change its accounting policies?

Changes must comply with the Lithuanian Law on Accounting and must be disclosed in financial statements, including reasons and potential impacts.

What rights do auditors have during an audit?

Auditors have the right to access all relevant documents, ask for explanations from management, and verify any necessary information without obstruction.

Can individuals request private audits?

Yes, owners or stakeholders may initiate private audits apart from legal requirements to assess financial health or investigate concerns.

Where can I report suspected accounting fraud?

You can report suspicions to the State Tax Inspectorate, law enforcement agencies, or professional associations such as the Lithuanian Chamber of Auditors.

Additional Resources

Those seeking further information or guidance in the field of accounting and auditing in Kaunas may find the following resources helpful:

• Authority of Audit, Accounting, Property Valuation and Insolvency Management (The supervising authority for accounting and audit)
• State Tax Inspectorate under the Ministry of Finance (For tax and compliance issues)
• Lithuanian Chamber of Auditors (Professional body for certified auditors)
• Register of Legal Entities (Where company financial statements are filed and available)
• Local business support centers and legal aid organizations in Kaunas

It is advisable to consult these resources or seek professional advice for specific issues.

Next Steps

If you need legal assistance with accounting or auditing matters in Kaunas, follow these steps to ensure the best possible outcome:

• Identify the specific issue or question you have regarding accounting or auditing.
• Gather all relevant documents, such as financial statements, correspondence, and contracts.
• Consult professionals or contact the relevant authorities listed in the Additional Resources section.
• Request a consultation with a lawyer or a certified auditor with experience in Lithuanian accounting and auditing law.
• Prepare a list of questions in advance to maximize the efficiency of your consultation.

Taking prompt action ensures compliance with legal requirements and helps to resolve any concerns before they escalate.