Regular audit - independence of the audit office

In statutory audits, the independence of the auditor is important so that they can form an objective opinion. Independence must not be compromised either in fact or in appearance.

Independence of the auditor

The law sets out a whole series of provisions in Article 728 of the Swiss Code of Obligations to ensure the independence of the auditor in statutory audits.

The following circumstances, among others, are incompatible with independence:

• Membership of the board of directors, another decision-making function or an employment relationship with the company being audited
• A direct or indirect participation in the share capital or a significant claim or liability
• A close relationship between the lead auditor and a member of the board of directors, another person with decision-making authority or a significant shareholder
• Involvement in the accounting
• Acceptance of an assignment that would lead to economic dependence
• Conclusion of a contract on terms that are not in line with market conditions
• Acceptance of valuable gifts or special benefits

Parts of the above provisions also apply to those employees of the audit firm who are not involved in the audit. The law imposes high requirements on the independence of the auditor with regard to regular audits.

Lower requirements for limited audits

In the case of limited audits, the requirements for the independence of the auditor are significantly lower than for regular audits. Although Art. 729 OR stipulates that the auditor must be independent and must form its audit opinion objectively, it is permissible, for example, to participate in the accounting and provide other services for the company being audited. However, this permission is limited by the requirement that measures must be taken if there is a risk of reviewing the auditor's own work.