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Statutory Auditor Reports
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Statutory Auditor Reports

When people talk about the Statutory Auditor (Revisor Fiscal), most organizations immediately think of the opinion on the financial statements. However, this perception overlooks a much broader reality: the Statutory Auditor's office is one of the main tools for control, transparency, and trust-building within companies.

Its work is not limited to reviewing accounting figures at year-end. The Statutory Auditor exercises comprehensive oversight of the organization, evaluating compliance with legal provisions, the reliability of financial information, the effectiveness of the internal control system, and the proper management of the company's administrators. As a result of this work, the Statutory Auditor issues various reports that support shareholders' decision-making, strengthen corporate governance, and provide assurance to investors, financial institutions, oversight bodies, and other stakeholders.

What is the Statutory Auditor's Office?

The Statutory Auditor's office (Revisoría Fiscal) is an oversight body unique to the Colombian legal system that acts in the interest of the community, under the direction and responsibility of a Certified Public Accountant serving as Statutory Auditor. Its purpose is to provide assurance regarding financial information, verify compliance with legal provisions, and independently evaluate the control systems implemented by the organization.

Duties of the Statutory Auditor: the source of their reports

The Statutory Auditor's responsibilities are primarily set out in Article 207 of the Commercial Code, which assigns duties that go far beyond issuing an opinion on the financial statements. Among the main responsibilities are:

  • Verifying that the company's operations comply with the law, the bylaws, and the decisions of its corporate bodies.
  • Promptly reporting any irregularities detected in the organization's operations.
  • Cooperating with State inspection, oversight, and control entities.
  • Ensuring the proper maintenance of accounting records, official books, and safekeeping of documentation.
  • Overseeing the protection and preservation of corporate assets.
  • Continuously evaluating the internal control system.
  • Issuing an opinion on the financial statements when required by law.

These duties show that the Statutory Auditor's role is ongoing and preventive in nature, aimed at strengthening business management rather than simply issuing an opinion at year-end.

What rules govern the Statutory Auditor's reports?

The issuance of the Statutory Auditor's reports does not depend on discretionary criteria, but rather on a regulatory framework that defines the scope of their responsibilities and work. The main provisions include:

  • The Commercial Code, particularly Articles 207, 208, and 209.
  • Law 43 of 1990, which governs professional ethics, the preparation of working papers, and the obligations of Certified Public Accountants.
  • Law 1314 of 2009, which incorporates the Assurance Information Standards.
  • Law 222 of 1995, related to the opinion on financial statements.
  • The International Standards on Auditing (ISA), applicable according to the entity's convergence group.

Not all reports that a Statutory Auditor may issue are the same in nature or frequency. Colombian legislation establishes certain mandatory reports that must be issued as part of the regular exercise of the Statutory Auditor's function, the most notable of which are described below.

Main reports the Statutory Auditor must issue

a) Opinion on the financial statements

This is the best-known report and the one that generates the greatest confidence for internal and external users. Through this document, the Statutory Auditor expresses an independent opinion on whether the financial statements fairly present the entity's financial position, in accordance with the applicable technical and regulatory framework.

Pursuant to Article 208 of the Commercial Code, the opinion must include, among other aspects:

  • A statement that the auditor obtained the information necessary to carry out the work.
  • The application of appropriate auditing procedures.
  • Confirmation that the accounting records are kept in accordance with legal provisions.
  • Consistency between the financial statements and the accounting books.
  • Any qualifications or exceptions, where applicable.
  • Verification of compliance with obligations related to Social Security contributions, when required by law.

b) Annual report to the General Shareholders' Meeting or Board of Partners

Article 209 of the Commercial Code establishes that the Statutory Auditor must present a report addressed to the highest corporate body, informing on matters related to:

  • Compliance by the administrators with the law and the bylaws.
  • The proper safekeeping of accounting records, official books, supporting documents, and correspondence.
  • The existence and functioning of internal control measures to protect the organization's assets.

This report is a key tool for strengthening corporate governance and facilitating decision-making by partners and/or shareholders.

In addition, there are special reports, certifications, and communications whose issuance depends on particular circumstances, findings identified during the course of professional work, or requests made by management, shareholders, inspection and oversight entities, tax authorities, financial institutions, or other third parties authorized by law.

Certifications and occasional reports

Companies also require certifications issued by the Statutory Auditor to support procurement processes, requests from financial institutions, compliance with legal obligations, or requirements from various authorities. Each of these certifications must be supported by sufficient and appropriate evidence obtained during the course of professional work. Some of these certifications may include:

  • Occasional reports on irregularities in the company's operations, whenever the Statutory Auditor deems it necessary to submit one (paragraph 2, Article 207 of the Commercial Code).
  • A report on acts of corruption detected in the course of their duties (Article 7 of Law 1474 of 2011).
  • A report on transactions classified as suspicious, addressed to the Financial Information and Analysis Unit – UIAF (Article 27 of Law 1762 of 2015).
  • Periodic and occasional reports requested by State inspection, oversight, and control bodies or by special legal regulations.
  • Reports addressed to tax authorities.

In all cases, the Statutory Auditor must verify that there is a legal or contractual basis for issuing the report, and that the conclusions or certifications issued are supported by sufficient and appropriate evidence obtained in accordance with the Assurance Information Standards and other applicable provisions.

Finally, it is important to understand that modern statutory auditing goes beyond the fulfillment of a legal obligation. Its true value lies in building trust, strengthening internal control, promoting transparency, and contributing to the sustainability of organizations. Understanding the scope of these reports allows organizations to make full use of the strategic value of the Statutory Auditor's office and turn it into an ally for decision-making, risk management, and the strengthening of corporate governance.

Prepared By: María Angélica Mora – Senior Auditor.

THIS DOCUMENT REFLECTS AN OPINION OF OUR FIRM. TAX AUTHORITIES MAY NOT AGREE WITH OUR POSITION. IF YOU WISH TO EXPLORE THIS TOPIC FURTHER OR REQUIRE SPECIALIZED ADVICE ON THE MATTER, PLEASE DO NOT HESITATE TO CONTACT US; WE ARE HERE TO SERVE YOU.