According to Order no. 10/2019 of January 3, 2019, medium and large companies, as well as national companies/corporations, companies with full or majority state capital, and autonomous administrations are required to audit their financial statements. 

Companies that exceed the limits of at least two of the following criteria as of the balance sheet date are also required to have their financial statements audited: 

• Total assets: RON 16,000,000;
• Net sales revenue: 32,000,000 lei;
• Average number of employees during the fiscal year: 50; 

The audit obligation occurs when the companies mentioned above exceed the respective limits in two consecutive fiscal years. 

Financial auditing includes statutory auditing and issuing an audit opinion on the financial statements or parts thereof, as well as the performance of other professional auditing and service tasks in accordance with International Standards on Auditing and other relevant regulations. 

Both statutory auditors and audit firms must be independent of the audited entity in the exercise of their profession, be objective, and not be involved in the decision-making process of the audited entity. 

Statutory audit is the audit of separate or consolidated financial statements conducted by international auditing standards to the extent: 

a) it is required by European Union law or national law;

b) in the case of small companies, it is performed voluntarily, and the audited financial statements are published together with the statutory audit opinion following the law.

According to Law 162/2017 on the activity of statutory audit, companies whose financial statements are subject to statutory audit are obliged to organize and ensure the exercise of the internal audit activity. 

Internal auditing involves an objective and independent evaluation of a company to assess its risks, improve its operations, make recommendations, and take measures to prevent identified risks. 

According to Law No. 162/2017 of July 6, 2017, failure to conduct an internal audit by companies whose financial statements are subject to statutory audit constitutes an infringement and is punishable by a fine of 50,000 to 100,000 lei.