What is the difference between ordinary and limited audit?

The main difference lies in the audit scope: ordinary audit offers a complete audit with positive attestation, while limited audit performs only limited audit procedures with negative assurance.

Both audit types are anchored in the Swiss Code of Obligations and serve different company sizes and requirements. Here is a detailed comparison:

Ordinary Audit:

Scope of Application:

• Large companies: Exceeding 2 of the 3 threshold values
• Threshold values: CHF 20 million balance sheet, CHF 40 million turnover, 250 full-time equivalent jobs
• Listed companies: Stock exchange listed companies (always)
• Financial intermediaries: Banks, insurances, financial service providers

Audit Scope:

• Complete audit: Annual accounts and management report
• Risk assessment: Systematic analysis of all material risks
• Detailed testing: Sampling and analytical audit procedures
• Internal controls: Evaluation of internal control system
• Legal compliance: Verification of compliance with all regulations

Limited Audit:

Scope of Application:

• Small and medium enterprises: Below threshold values
• AG and GmbH: Not subject to ordinary audit
• Opt-out not chosen: Or not possible
• Voluntary application: Even if opt-out would be possible

Audit Scope:

• Limited review: Focus on essential aspects
• Analytical procedures: Plausibility checks and trend analyses
• Inquiries: Management and board of directors
• No detailed testing: No extensive sampling
• Surface review: Concentration on obvious errors

Direct Comparison:

Aspect

Ordinary Audit

Limited Audit

‍Scope: Complete auditLimited review‍

Duration: 10-50+ days3-8 days

‍Costs: CHF 8,000-100,000+CHF 3,000-15,000

‍Attestation: Positive ("true and fair")Negative ("no matters noted")

‍Audit depth: DetailedSuperficial

‍Sampling: ExtensiveMinimal

Legal Differences:

Auditor Liability:

• Ordinary audit: Higher liability risks
• Limited audit: Limited liability according to audit scope

Reporting:

• Ordinary: Detailed report with Management Letter
• Limited: Brief report, usually 1-2 pages

Practical Implications:

For the Company:

• Ordinary: Higher credibility, but more effort
• Limited: Lower costs, less administrative effort

For Stakeholders:

• Banks: Often accept both types
• Investors: Generally prefer ordinary audit
• Business partners: Depends on industry

Audit with Findea.ch:

We offer both audit types:

Our Services:

• Needs analysis: Which audit type is optimal?
• Efficient execution: Minimal effort for you
• Transparent pricing: Fixed annual packages
• Advisory included: Free improvement suggestions

Decision Guide:

Choose ordinary audit if:

• Threshold values exceeded
• High credit volumes with banks
• International investors
• IPO planned

Choose limited audit if:

• Meet minimum legal requirement
• Minimize costs
• Reduce administrative effort
• Local business activity

Conclusion: The choice between ordinary and limited audit depends on company size, stakeholder expectations, and cost-benefit considerations.