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Ordinary Audit

Ordinary Audit

Once a Swiss company reaches a certain economic threshold, it becomes subject to a statutory audit, regardless of its legal form. As licensed audit experts registered with the Swiss Federal Audit Oversight Authority, we would be pleased to provide you with a tailored offer.

The audit law applies to stock corporations, limited liability companies, and cooperatives, as well as limited partnerships with shares, associations, and foundations. The type of audit depends on the size and economic significance of the organization. These factors determine whether a company is subject to an ordinary or a limited audit. Companies are required to conduct an ordinary audit if they exceed two of the following thresholds in two consecutive financial years (Art. 727 CO):

  •  Balance sheet total: CHF 20 million
  •  Revenue: CHF 40 million
  •  Full-time positions: 250

In addition, publicly traded companies and companies required to prepare consolidated financial statements are always subject to a statutory audit.

A company must also conduct a regular audit if:

  • Shareholders who together represent at least 10% of the share capital request it.
  • The articles of association of a company require a regular audit.
  • The general meeting resolves to have the annual financial statement audited.

Companies that do not meet these criteria are subject to a limited audit or are completely exempt from the audit requirement.

Sole proprietorships and partnerships (general partnerships and limited partnerships) are not required to undergo an audit by an external auditing firm.

Responsibilities in a Statutory Audit

In a statutory audit, the audit firm, in accordance with Art. 728a para. 1 of the Swiss Code of Obligations, examines whether:

  • The annual financial statement and, if applicable, the consolidated financial statement comply with the legal requirements, articles of association, and the chosen framework.
  • The board of directors' proposal to the general meeting regarding the allocation of the net profit complies with the legal requirements and the articles of association.
  • An internal control system exists.

In a regular audit, detailed audit procedures are carried out, taking into account the risk structure of the company. These may include, for example:

  • The audit of the risk of fraudulent actions and legal violations.
  • Obtaining third-party confirmations from banks, lawyers, creditors, and debtors.
  • Observation of the inventory count.
  • Detailed examination of transactions.
  • The audit of the existence of the internal control system.

After completing the statutory audit, we provide the board of directors with a comprehensive report detailing our findings on the financial statements, the internal control system, and the conduct and outcome of the audit

For the general meeting, we provide a summary report on the audit results. This report includes:

  • A statement on the results of the audit.
  • Information on independence.
  • Information about the person who led the audit and their professional qualifications.
  • A recommendation on whether the annual financial statement and the consolidated financial statement should be approved or rejected, with or without qualifications.

Feel free to contact us for further clarification

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