The independence of the audit firm in the ordinary audit

The independence of the audit office can be described as a cardinal prerequisite for an audit firm. Thus, the law also demands that the audit firm is actually and apparently independent. Particularly high demands are placed on the audit office during statutory audits within this framework.

Principles of audit independence

‍The law states that the independence of the audit office must not be compromised, either actually or apparently, according to Art. 728 and 729 OR. In today's age, where more and more private information is becoming visible on the internet, independence by appearance is becoming increasingly important. This is assessed from the perspective of an independent third party. These independence criteria must be met by all individuals involved in the audit. Higher demands are placed on the independence of the audit office during the statutory audit than during the limited audit.

‍Independence during the Statutory Audit

‍The law outlines in Art. 728 para. 2 OR aspects that are not compatible with independence. This includes a non-exhaustive, exemplary listing. Among other things, this includes a significant debt of the company being audited to the auditing company. This is one of the reasons why audit firms place great importance on the timely settlement of their fee claims. If the claim remains open until the next audit report, this can pose a problem. In addition, the four-eye principle must not be violated. If a situation arises where auditors are reviewing their own work (whether by participating in the bookkeeping or by providing other services), this represents a breach of the principle of independence. A single mandate should also not lead to economic dependence of the audit office. Here, the limit is set at a share of 10% of the revenue of the audit firm. The audit office itself is obligated to address its independence in its audit report. This is intended to increase the protection of shareholders.