Accounting and Auditing Law in Lithuania
The acquis in the field of auditing consists of three Council Directives (the Fourth, Seventh, and Eighth) all of which are based on Article 44(2)(g) (ex Article 54(3)(g)) of the Treaty Establishing the European Community.
The legal basis for accounting and auditing in Lithuania has been established by the Law on the Fundamentals of Accounting of 16 June 1992, the Law on Audit of 15 June 1999, and the Law on Companies of 5 July 1994.
The principles of accounting and financial accounts are governed by the Law on the Fundamentals of Accounting and acts of secondary legislation. These legal acts are in line with the provisions of the Fourth Council Directive (87/660/EEC). The provisions of the Seventh Council Directive (83/349/EEC) are being applied only to banks.
Auditors’ activities
Auditors’ activities are governed by the Law on Audit which lays down the requirements for persons who have the right to carry out audits of monthly and annual accounts. These provisions are in full compliance with the Eighth Council Directive (84/253/EEC).
In the course of further development of the legal framework covering activities of undertakings, the adoption of the following laws are on the agenda for the year 2001:
· Law on Accounting will define the requirements for persons who have the right to provide accounting services.
· Law on Consolidated Annual Accounts will provide for the cases where the consolidation is obligatory, and the provisions for obligatory consolidation in other cases.
Full compliance with the acquis in the field of accounting and auditing law is envisaged by the year 2002 after the Laws on Accounting and Consolidated Annual Accounts come into force.