Ordinary Revision: Am I Obligated to Do It?

Since January 01, 2012, the conditions for the obligation to carry out a statutory audit have been tightened. This article lists the exact conditions that must be met for a company to be obligated to undergo a statutory audit.

The conditions for the statutory audit are regulated in Art. 727 OR and state that the following companies must have their annual financial statements and, if applicable, their consolidated financial statements audited by an audit firm:

• 1. Companies that...
  • a) have listed equity securities on a stock exchange...
  • b) have outstanding bond obligations...
  • c) contribute at least 20% of the assets or revenues to the consolidated financial statements of a company as per a) or b).

• 2. Companies that exceed two of the following sizes in two consecutive fiscal years.
  • ‍a) Balance sheet total of CHF 20 million.
  • b) Revenue of CHF 40 million.
  • c) 250 full-time positions on an annual average

• 3. Companies that are obligated to prepare consolidated financial statements.

Furthermore, a statutory audit must be carried out if, on one hand, shareholders holding at least 10% of the share capital demand such an audit, or if, on the other hand, the bylaws so provide, or the general meeting decides it.