Andorra’s audit law: what it regulates and how it reshapes the professional framework

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🧾 Andorra’s new Audit Law: why it was created and what it aims to regulate

The Law 10/2024, of 27 May, on the audit of accounts is one of the most significant reforms in the modernization of Andorra’s economic and financial system. Although statutory audits were already being performed in practice, there was no comprehensive and cross-sector legal framework governing the profession, apart from a few rules applicable only to the financial and insurance sectors.

This left the audit activity in a regulatory vacuum: audits were carried out, but without a unified legal framework, without harmonised independence requirements, and without a supervisory system.
With this law, Andorra makes a decisive step forward, aligning itself with many European jurisdictions.

If you want to understand how Andorra has evolved internationally in recent years, see Andorra’s international evolution: from tradition to a global outlook.

Why has the new Audit Law been approved?

The law pursues three main objectives:

• To establish a complete and internationally aligned legal framework, incorporating the principles of the IESBA (International Ethics Standards Board of Accountants) and the standards issued by the IAASB (International Auditing and Assurance Standards Board), fully consistent with EU Directive 2006/43.
• To strengthen legal certainty and transparency in the economic and financial information reported by companies, essential for a jurisdiction that wants to reinforce the confidence of investors and institutions.
• To regulate an essential market activity that, until now, had no dedicated legal regime outside the financial sector.

For professionals who work with financial information—companies, directors and investors—this law complements other key frameworks such as the Companies Act and the Accounting Act, explained in the article Accounting in Andorra: origin and structure of the General Accounting Plan (PGC).

What was the situation before Law 10/2024?

For many years, auditing in Andorra operated under a model of “partial regulation”, limited to:

• Law 8/2013 on the financial system
• Law 12/2017 on insurance and reinsurance

These laws only applied to financial entities and insurers. There was no general auditor statute, no access requirements, no official registry, and no harmonised independence rules.

In practice:

• audit activity existed “de facto”,
• but without a structured quality framework,
• without a supervisory system,
• and without a modern model of professional liability.

This regulatory gap contrasted with international practice and with the increasing requirements of Andorran banks, which—as explained in Andorra’s banking system: banks, regulation and international presence—demand ever-greater reliability and transparency in audited financial statements.

These expectations have also been shaped by international frameworks such as CRS, FATCA, the country’s integration into SEPA, and the Monetary Agreement between Andorra and the EU.

Core objectives of the new regulation

Law 10/2024 is built around four major pillars:

🔹Professionalising and harmonising the audit activity

The law incorporates:

• the ethical principles of the IESBA,
• the auditing and quality-control standards of the IAASB,
• and an access and qualification system comparable to that of EU Member States.

This ensures that audit work performed in Andorra is recognisable, comparable and reliable for banks, investors and foreign authorities—strengthening Andorra’s credibility abroad.

🔹Protecting the public interest

The law recognises that auditing is not only a service provided to the audited company: it also affects:

• creditors,
• banks,
• investors,
• public administrations,
• and other third parties.

By offering assurance on financial statements, auditing performs an essential public-interest function.

🔹Establishing a real and effective supervisory system

The law creates:

• a public supervisor under the ministry responsible for financial matters,
• and a Supervisory Commission for Audit of Accounts, with representatives from the private sector, the AFA (Andorran Financial Authority), the Court of Auditors and the Government.

This commission sets standards, training requirements, independence criteria and quality-control mechanisms.

🔹Regulating access, training and disciplinary regime

The law establishes:

• qualification and experience requirements,
• an aptitude exam,
• a B2 level in Catalan—as is required in most regulated professions. To understand the role of professional bodies, see ➤ Professional associations in Andorra: what they are and why they matter.
• an official registry of auditors and audit firms,
• mandatory continuing education,
• and a dedicated disciplinary regime.

These rules directly affect companies that must undergo statutory audit according to legal thresholds, a topic analysed in Tax and accounting obligations in Andorra: what companies and freelancers must comply with.

Key elements of Law 10/2024 (structured overview)

🔹Scope and purpose

The law regulates:

• statutory (mandatory) audits,
• voluntary audits,
• and other assurance engagements on financial information.

It also establishes that only duly registered professionals or audit firms may perform statutory audits.

🔹Professional practice requirements

The law regulates:

• access requirements and professional accreditation,
• alternative qualification routes,
• the framework for foreign auditors,
• and the rules governing audit firms.

🔹Independence and ethics

The law lists the main threats to independence:

• self-interest,
• self-review,
• advocacy,
• familiarity,
• intimidation.

It also establishes specific prohibitions and safeguards: prohibited services, financial relationships, mandatory rotation, limits on economic dependence, etc.

🔹Supervision and quality control

The supervisor may:

• inspect audit work,
• request documentation,
• issue recommendations,
• and impose sanctions where necessary.

The supervisor also manages the Registry of Auditors and ensures compliance with technical standards.

🔹Sanctioning regime and fees

The law defines:

• minor, serious and very serious infringements,
• proportional sanctions,
• and fees linked to audit activity and supervisory services.

🔹Additional and transitional provisions

These include:

• determining which entities are required to undergo audit,
• adapting the statutes of the College of Economists of Andorra (COEA),
• amendments to the Companies Act,
• and special provisions for the financial and insurance sectors.

A key law for strengthening economic confidence

Law 10/2024 brings:

• international alignment,
• greater financial transparency,
• legal certainty,
• a more professional audit environment,
• effective supervision,
• and stronger protection for investors and third parties.

It fits naturally within the evolution of Andorra’s increasingly open and sophisticated economy.
It also reinforces the regulatory framework at a time when governance, taxation and access to financing depend heavily on the credibility of audited financial statements.
To better understand this context, see Taxation in Andorra: structure, tax rates and real advantages.

For companies, directors and shareholders, understanding this law is as important as understanding the obligations outlined in Tax and accounting obligations in Andorra: what companies and freelancers must comply with.

If you also want to understand the central role and responsibility of company directors, you can read Company directors in Andorra: responsibilities, requirements and who may serve.

🤝 How ELYSIUM can support you

If your company is subject to statutory audit, if you are an auditor wanting to understand the implications of this law, or if you are a director looking to strengthen corporate governance, it is essential to analyse how this regulation applies to your specific situation.

At ELYSIUM, we combine expertise in taxation, accounting, corporate law and financial regulation, offering a comprehensive and rigorous perspective to support your decision-making.

Although we do not perform regulated audit services, we are professionally qualified to review financial statements, analyse and value companies, and help you make informed financial and accounting decisions.

If you believe we can assist you, you can reach us through the contact form.

Last updated: December 2025