Best Accounting & Auditing Lawyers in Tauragė

About Accounting & Auditing Law in Tauragė, Republic of Lithuania

Accounting and auditing hold a crucial role in the business environment of Tauragė, Republic of Lithuania. These fields are governed by both national legislation and European Union directives. Accounting involves tracking, recording, and reporting financial transactions, while auditing verifies the accuracy and compliance of these records. Both practices ensure transparency, support tax compliance, and enhance the credibility of financial statements for stakeholders. In Tauragė, businesses and individuals must adhere to national accounting standards and may be subject to audit obligations depending on their size or nature.

Why You May Need a Lawyer

There are several situations where legal advice or representation might be necessary regarding accounting and auditing matters in Tauragė. These include:

• Facing fines or penalties for non-compliance with accounting laws
• Disputes with tax authorities or during tax inspections
• Complex mergers or acquisitions requiring due diligence and audit reviews
• Issues involving financial fraud, embezzlement, or misappropriation of funds
• Preparing for or responding to statutory audits
• Resolving shareholder disputes related to audited financial statements
• Implementing international accounting standards or reporting requirements
• Advice when starting a business to ensure proper record keeping and compliance

With the complexity of accounting and auditing regulations, a lawyer can help interpret the law, communicate with authorities, represent your interests in disputes, and provide guidance on compliance.

Local Laws Overview

In Tauragė, as elsewhere in Lithuania, accounting and auditing are regulated primarily at the national level. The main legislative acts include the Law on Accounting of the Republic of Lithuania, the Law on Audit, and related orders from the Ministry of Finance. These laws set out rules for financial reporting, bookkeeping, and mandatory audit requirements.

Businesses are required to maintain proper financial records and prepare annual financial statements. Certain entities, such as joint-stock companies and larger enterprises, are obliged to have their financial statements audited by independent, licensed auditors. Non-compliance can lead to fines or criminal liability in cases of deliberate misrepresentation. All accounting must adhere to Lithuanian national accounting standards or, for some entities, International Financial Reporting Standards (IFRS).

Additionally, local tax authorities in Tauragė monitor compliance during audits and inspections, and are empowered to issue sanctions for violations.

Frequently Asked Questions

What are the primary laws regulating accounting and auditing in Tauragė?

The primary regulations are the Law on Accounting and the Law on Audit of the Republic of Lithuania, along with supplementary orders and standards issued by the Ministry of Finance.

When is an audit mandatory for a company in Tauragė?

An audit is generally mandatory for public interest entities, large or medium companies, and certain categories of legal entities as defined by Lithuanian law based on revenue, asset size, and number of employees.

Do all businesses have to follow International Financial Reporting Standards?

Not all businesses are obligated to use IFRS. Only listed companies and certain large entities must apply IFRS. Others use Lithuanian national accounting standards.

What needs to be included in annual financial statements?

Annual financial statements must contain a balance sheet, profit and loss statement, cash flow statement, statement of changes in equity, and explanatory notes.

How long must accounting records be retained?

Accounting records must usually be retained for at least 10 years in Lithuania, including in Tauragė. Some specific records may require different retention periods.

What are common penalties for failing to comply with accounting rules?

Penalties can include administrative fines, additional tax charges, restriction of business activities, and, in severe cases, criminal liability.

Who can perform statutory audits?

Only licensed statutory auditors or audit firms registered with the Lithuanian Chamber of Auditors are allowed to perform statutory audits.

How are accounting and tax audits different?

Accounting audits focus on the accuracy of financial statements and compliance with laws, while tax audits, usually conducted by tax authorities, focus specifically on correct calculation and payment of taxes.

Are there requirements for accounting software in Tauragė?

There are no specific requirements for accounting software, but the software must ensure compliance with Lithuanian law and the possibility to retain records as required.

Can financial statements be submitted in English?

Financial statements must generally be prepared and submitted in Lithuanian, but international companies may also prepare them in other languages for internal use.

Additional Resources

Several resources are available in Tauragė and across Lithuania to assist with accounting and auditing issues:

• State Tax Inspectorate under the Ministry of Finance (Valstybinė mokesčių inspekcija) for tax related inquiries and inspections
• Ministry of Finance of the Republic of Lithuania, responsible for issuing regulations and overseeing auditing standards
• Lithuanian Chamber of Auditors (Lietuvos auditorių rūmai), the licensing body for auditors
• Lithuanian Association of Accountants and Auditors for training, standards, and industry developments
• Tauragė local municipality for information about local business regulations and permits

Next Steps

If you need legal assistance in accounting or auditing matters in Tauragė, consider taking the following actions:

• Gather all relevant documentation, such as financial statements, contracts, official correspondence, and previous audit reports
• Identify the specific issue or question you are facing, whether compliance, dispute, investigation, or another matter
• Consult a qualified lawyer who specializes in accounting or corporate law in Lithuania for a case assessment
• If necessary, contact local professional organizations or the Chamber of Auditors for recommendations of credible specialists
• Keep records of all communications, including legal consultations and advice received

Early legal intervention can minimize risks and ensure that your accounting and auditing practices are fully compliant with Lithuanian law in Tauragė.