Limited or statutory audit?

Depending on the legal form, there is an obligation in Switzerland to prepare annual financial statements. These must be audited for accuracy by an auditor under certain conditions (OR 727 et seq.). A distinction can generally be made between limited and ordinary audits.

An ordinary audit becomes necessary if two of the following criteria are exceeded in two consecutive years:

• 250 employees (full-time positions)
• CHF 20 million in total balance sheet
• CHF 40 million in revenue

Thus, the requirement to conduct an ordinary audit is usually reserved for large corporations.

The difference between the two audit options is primarily the scope of examination and the associated costs. While the limited audit checks whether there are no errors in the annual financial statements, the ordinary audit confirms the correctness of the annual financial statements. Thus, the quality of the ordinary audit is considered higher.

The audit also has a positive impact on the trust from the stakeholders of the company. Particularly the state, investors, banks, and lenders see the audit as a seal of quality. Therefore, the more detailed the audit, the higher the trust from stakeholders.

Our experts are happy to advise you on all matters related to ordinary and limited audits. Calculate your quote online and arrange a consultation.

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