Georgia’s audit law is changing: what companies and auditors need to know

A draft amendment to the Law on Accounting, Reporting and Auditing has been published. Key points:

For companies — fines for breaching the law’s requirements:

• Category IV – GEL 500

• Category III – GEL 1,000

• Category II – GEL 5,000

• Category I and PIEs – GEL 10,000
  ⚠️ If reports are missing for 2 periods in a row, the fine can rise to 5×. After 3 missed periods, a further 10× fine can be added.
  ✅ Category IV entities will get only a written warning for their 2024–2025 reports.

For auditors:

• A new “Candidate Auditor” status with its own register

• PIE audit engagements run 2–10 years. A tender can extend them by 10 more years, and after that the same firm must wait 4 years before it can be reappointed.

• Engagement partners must rotate at least every 7 years

• A breach of the IESBA Code means a 1–3 year suspension from audit work

• The regulator can request documents the same day

ℹ️ This is still a draft. The Georgian Federation of Professional Accountants and Auditors (GFPAA, ბაფი) set out its comments on 9 October.

💼 AGIC can help you assess how the changes affect your business.