Regular audit - independence of the audit office

In the regular audit, the independence of the audit office is an important point to allow it to form its auditing opinion objectively. The independence must not be compromised, either actually or apparently.

Independence of the Audit Office

The law provides in Art. 728 OR a whole range of provisions to guarantee the independence of the audit office in the regular audit. Situations incompatible with independence include, among others, the following:

• Membership on the board of directors, any other decision-making role, or an employment relationship with the company being audited
• A direct or indirect participation in the share capital or a significant claim or debt
• A close relationship of the chief auditor to a member of the board of directors, to another person with decision-making authority or to a significant shareholder
• Participation in the accounting
• Taking on a contract which would lead to economic dependence
• Conclusion of a contract on non-market terms
• Acceptance of valuable gifts or special benefits

Parts of the regulations mentioned above also apply to those employees of the audit firm who are not involved in the audit. The law sets high requirements for the independence of the audit office with respect to the regular audit.

Lower Requirements in the Limited Audit

In the limited audit, the requirements for the independence of the audit office are significantly lower than in the regular audit. Although Art. 729 OR stipulates that the audit office must be independent and must form its auditing opinion objectively, for instance, participation in the accounting and providing other services for the company being audited is permitted. However, this permission is limited in that measures must be taken if there is a risk of supervising one's own work.