• Mixed economy companies and public limited companies whose assets exceed US $ 100,000;

• Branches of foreign companies established in Ecuador, whose assets exceed US $ 100,000;

• Public limited companies, in commodities for shares and limited liability, whose asset amounts exceed US $ 500,000;

• Companies subject to the control and supervision of the SCVS required to present consolidated balance sheets, and;

• Public interest companies, whose asset amounts exceed US $ 500,000.

Companies must contract the external audit services of natural or legal persons that have the current certification as auditors by the SCVS.

Companies can have the same external auditor for up to 5 consecutive years and, in the case of Public Interest Companies, up to 3 consecutive years.

If the Company activity is within the activities indicated in resolution No. SCVS-DSC-2018-0008, it will be considered a public interest company, and if it also exceeds US $ 500,000, it will be required to present an audit report. external.

The General Meeting of shareholders or the legal representative of the Company are the ones who approve the hiring of the external auditor.

The external auditor must deliver: 1) The audit opinion on the financial statements and 2) The report of observations on the internal control of the Company.

No, the contract must be in writing and will have the subscription date, deadlines, objectives, scope of work, responsibilities of the auditor and the administration and other additional conditions that are agreed between the audited party and the natural or legal person qualified as external auditor.

Companies that are obliged to present an audit report cannot hire the following persons as external auditors:

• The partners or shareholders of the company;

• The natural or legal persons that are part of the management bodies of the company;

• Employees, accountants, commissioners, advisers, experts and consultants of the company;

• The spouses of the administrators, directors or commissioners of the company, or their relatives up to the fourth degree of consanguinity or second degree of affinity, and;

• The dependents of said administrators, directors and commissioners.

Institutions of the financial and insurance system, foreign subsidiaries under the control of the institutions of the Ecuadorian financial system; the stock exchanges and houses; fund and trust administrators; cooperatives, foundations and non-governmental organizations; natural and legal persons who are regularly engaged in the commercialization of vehicles, boats, ships and aircraft;

The companies dedicated to the service of national or international transfer of money or values, national and international transport of money, parcels or postal packages, postal and parallel mail, including their operators, agents and agencies; tourism agencies and tour operators;

Natural and legal persons who are regularly engaged in real estate investment and brokerage and construction; racetracks; the mountains of piety and the pawnshops; jewelery, metal and precious stone negotiators; antiques and art dealers; the notaries; art promoters and raffle organizers; property and mercantile registrars.