Ordinary vs. Limited Audit

In Switzerland, only about 1,500 companies carry out a full audit, while most Swiss companies opt for a limited audit or even forego an audit altogether. The following is a comparison of the two types of audits with respect to the scope of the audit and the auditing methods used.

Limited or Full Audit?

Whether a company must have its annual accounts fully audited by an auditing firm or whether a limited audit is sufficient depends on the balance sheet total, the turnover, the number of full-time positions, and the obligation to prepare consolidated financial statements (see Limited or Full Audit?).

Scope of the Audit

Unlike the full audit, where the annual accounts are inspected to ensure compliance with legal provisions, statutes, and the selected rules, the limited audit only checks for compliance with legal and statutory provisions. In addition, no investigations are carried out to detect other potential statutory offenses and criminal acts. Furthermore, the internal control system is not subject to examination in a limited audit.

Audit Methods

In contrast to the full audit, a limited audit does not involve process-oriented auditing actions, such as assessing the accounting system and internal controls. For obtaining audit evidence, primarily inquiries and analytical tests (e.g., summary control calculations, ratios of figures) are conducted. If heightened risks are identified, appropriate detailed examinations follow (e.g., comparison of vouchers with their recording, mathematical verification). However, neither third-party confirmations are obtained nor is an inventory observation conducted.

The two types of audits also place different demands on the independence of the auditing firm, which are explained in more detail in our article Limited Audit – Requirements for the Auditing Firm.

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