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Limited Statutory Examination

Limited Statutory Examination

Companies that do not meet the criteria for a ordinary audit but employ more than 10 full-time staff on average per year are subject to a limited statutory examination.

The limited audit is a unique Swiss regulation for the examination of small and medium-sized enterprises, in which the scope and depth of audit procedures are significantly less extensive compared to a statutory (ordinary) audit.

In a limited audit, the review primarily focuses on inquiries, analytical audit procedures, and reasonable detailed tests
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Unlike a statutory audit, a limited audit does not include procedures such as examining the existence of an internal control system, inventory observations, or obtaining third-party confirmations.

Responsibilities in a Limited Audit

In a limited audit, the audit firm, in accordance with Art. 729a para. 1 of the Swiss Code of Obligations, examines whether:

  • The annual financial statement does not comply with legal requirements and the articles of association.
  • The board of directors' proposal to the general meeting regarding the appropriation of retained earnings does not comply with legal requirements and the articles of association.

After completing the limited audit, we provide the general meeting with a written summary report on the audit results. This report includes:

  • A note on the limited nature of the audit.
  • A statement on the results of the audit.
  • Information on independence and, if applicable, involvement in bookkeeping and other services provided to the company being audited.
  • Information about the person who led the audit and their professional qualifications.

In contrast to a statutory audit, the audit firm does not provide a recommendation on whether to approve or reject the financial statements as part of the reporting for a limited audit.

Feel free to contact us for further clarification

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