Prakas 563 – Obligation of having financial statements audited
Important sections of Prakas 563 are summarized below:
Article 4 – All public enterprise, public limited enterprise and investment projects (QIP) must submit their financial statements for independent audit.
Article 5 – Enterprises other than those listed in article 4 needs to submit their financial statements for independent audit. Article 5 enumerates the updated 3 criteria for enterprises to be audited. The threshold for revenue has been raised to KHR 4 billion or USD1 million, while total assets threshold remained at KHR3 billion or USD750,000, and total employees of at least 100. If an enterprise meets any 2 of these criteria, the enterprise’ financial statements needs to be submitted for independent audit.
Article 6 – Non-profit organisations with total annual expenses exceeding KHR 2 billion or USD500,000, and having total of at least 20 employee shall now be obligated to submit their financial statements for independent audit.
Article 9 – Independent audit and issuance of auditor’s report on financial statements must be completed no later than 6 months from accounting closing date. Request for delays must be submitted to the NAC.
Article 10 – All obligated enterprises should send a copy of their audited financial statements and auditor’s report to the Secretarial office of the NAC no later than 6 months and 15 days from the account closing date.
Article 11 – An independent audit on financial statements for the accounting period of 2020 shall be determined as the 1st year of independent audit for purposes for determining when auditors should rotate.