External Audit Coordination in Georgia

External Audit Coordination

Who is subject to a statutory audit?

Public-interest entities, first and second category enterprises and groups, including subsidiaries; third-fourth categories and non-commercial persons are exempt (Article 6).

When are statements submitted with the conclusion?

By 1 October of the following year; for a non-calendar period, within 9 months of its end (Article 9).

How long is audit documentation kept?

For 6 years from the end of the reporting period (Article 15).

Under which standards is the audit conducted?

International Standards on Auditing; updates enter into force within 6 months (Article 14).

5 min·9 Jan 2026

Who Is Subject to the Audit of Financial Statements

The coordination of an external audit begins with the question whether your organization is required by law to have one. Under Article 6 of the Law of Georgia on Accounting, Reporting and Audit, a public-interest entity, an enterprise of the first or second category and a group are obliged to ensure the audit of their financial statements or consolidated financial statements in the manner established by law. This requirement extends to a subject that is a subsidiary enterprise within a group — being inside a group structure does not neutralize the audit obligation.

On the other hand, enterprises of the third and fourth categories and non-entrepreneurial (non-commercial) legal persons are exempt from the audit obligation, unless otherwise provided by the legislation. For an enterprise subject to regulation or supervision by a regulatory or supervisory authority, the requirement for an audit of interim financial statements is established by the sectoral legislation. Determining the correct category and verifying sectoral requirements is the first step of coordination.