Understanding audits: answers to the most important questions
Audit obligation, opting out, limited or ordinary statutory audit: here you find compact answers to the questions we are asked most often. Without jargon — and with clear next steps.
Is my company subject to a statutory audit?
Since 2008, it is not the legal form but the economic significance that decides on the audit obligation. It applies to stock corporations, GmbHs, cooperatives and — under certain conditions — associations and foundations. The principle: whoever does not meet the criteria of the ordinary statutory audit is subject to the limited statutory audit, unless an opting out is in place.
Limited or ordinary statutory audit?
The ordinary statutory audit applies to listed companies, companies required to prepare consolidated financial statements and companies that exceed two of the three thresholds (balance sheet total CHF 20 million, revenue CHF 40 million, 250 full-time positions) in two consecutive years. All other companies subject to an audit receive the limited statutory audit.
What is an opting out and when does it make sense?
Companies with at most ten full-time positions on annual average can waive the limited statutory audit with the consent of all shareholders. That saves costs, but has a flip side: banks, investors, suppliers or buyers of a company often require audited figures. A sober assessment is therefore worthwhile before opting out.
How do I change my statutory auditors?
The statutory auditors are elected by the general meeting for one to three financial years; their term ends with the approval of the last financial statements. A change is therefore best planned for the ordinary general meeting. What matters is a clean handover, the timely election of the new auditors and the corresponding entry in the commercial register. We accompany you through these steps.
What exactly do the statutory auditors audit?
The audit examines whether the financial statements comply with the law and the articles of association — for the ordinary statutory audit, additionally the existence of the internal control system. Whether your company is being run successfully in economic terms is not the subject of the audit.
What does an audit cost?
That depends on the size, complexity and quality of the bookkeeping. After an initial consultation you receive a transparent quote from us.
How much internal effort should we expect?
Less than many expect. With good preparation and a clear list of documents, we keep the effort for your team deliberately low.
What does the independence of the auditors mean?
The statutory auditors must be independent and form their audit opinion objectively. Particularly strict rules apply to the ordinary statutory audit, such as the prohibition on assisting with the bookkeeping. For the limited statutory audit, certain additional services are permitted provided objective judgement remains ensured and any involvement is disclosed.
Your question was not among them?
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