In order to implement the provisions of Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and consolidated accounts, in the national laws and regulations, the Government of the Republic of Lithuania had prepared a draft law on amendment to the Law on Audit of the Republic of Lithuania.

      In order to harmonise all related laws and regulations, draft laws amending the Law on Financial Institutions (official gazette Valstybės Žinios, 2002, No. 91-3891), Accounting Law (official gazette Valstybės Žinios, 2001, No. 99-3515), Law on Banks (official gazette Valstybės Žinios, 2004, No. 54-1832), the Code of Administrative Offences of the Republic of Lithuania, had been prepared.

      It is provided for in the draft amendment to the Law on Financial Institutions of the Republic of Lithuania, that the auditor or another person participating in the audit together with the auditor, may not perform an audit of the same financial institution for more than 5 consecutive financial years. The current version of the Law on Financial Institutions allows the same persons to perform the audit of the same financial institution for not more than 3 consecutive financial years.

      The Law on Banks of the Republic of Lithuania is proposed to be amended by establishing that the auditor as well as another person participating in the audit together with the auditor, may not perform an audit of the same bank for more than 3 consecutive financial years. The current version of the Law on Banks allows the same persons to perform the audit of the same bank for not more than 2 consecutive financial years.

      Following adoption of the proposed amendments to the laws by the Seimas of the Republic of Lithuania, the said amendments would come into effect on 1 June 2008.