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A political organisation shall prepare consolidated financial statements for all of the units that it includes, such as separate associations, constituency councils, holding companies and related non-profit institutions. An individual party unit may be excluded from preparing consolidated financial statements if its income does not exceed ISK 400,000 annually. Annual financial statements shall be drawn up according to subject rules of the Annual Accounts Act, as applicable. The Icelandic National Audit Office shall issue further instructions on accounting practices for political organisations.
A political organisation shall submit its financial statements to chartered accountants for auditing. The auditors shall operate according to guidelines from the Icelandic National Audit Office and verify that the consolidated statements were prepared in accordance with provisions of this Act and general accounting principles, confirming that opinion by signing the statements. The Icelandic National Audit Office may at any time call for all documents in order to verify invoices and that donations by individuals and legal entities have remained within the limitations stated in Chapter III.