When does my company need an audit?

Your company needs an audit if it exceeds the legal thresholds: balance sheet total over CHF 20 million, turnover over CHF 40 million, or more than 250 full-time positions on annual average.

The audit obligation in Switzerland is clearly regulated in the Code of Obligations. Here is a complete overview of when an audit is required:

Legal thresholds for ordinary audit:

An ordinary audit is mandatory if the company exceeds two of the three following values in two consecutive business years:

The three thresholds:

• Balance sheet total: CHF 20 million
• Turnover: CHF 40 million
• Full-time positions: 250 on annual average

Additional criteria:

• Public companies: Always subject to audit (listed companies)
• Financial intermediaries: Banks, insurance companies, financial service providers
• Collective investments: Funds and similar structures

Limited audit:

Companies that do not reach the thresholds for an ordinary audit require a limited audit, except if they meet the opt-out prerequisites.

Who needs a limited audit?

• All AG and GmbH: Not falling under ordinary audit
• Cooperatives: With more than 20 members
• Associations: With economic activity over CHF 500'000
• Foundations: Usually required under cantonal law

Opt-out possibilities (waiver of audit):

Small companies can waive an audit under certain conditions:

Prerequisites for opt-out:

• Employees: Fewer than 10 full-time positions on annual average
• Unanimous decision: All shareholders/partners must consent
• No public debt: Bonds or similar obligations
• Annual confirmation: Decision must be renewed annually

Consequences of missing audit:

Legal consequences:

• Disciplinary fines: CHF 100-10'000 for board of directors
• Dissolution threat: In case of serious violations
• Commercial register: Entries may be refused

Practical disadvantages:

• Banking sector: Banks often refuse credits without audit
• Business partners: Loss of trust with important customers
• Investors: Due diligence becomes difficult

Audit with Findea.ch:

We help you assess your audit obligation:

Free consultation:

• • Threshold verification: Analysis of your company data
• • Opt-out verification: Clarification of possibilities
• • Cost estimation: Transparent pricing

Professional execution:

• • Licensed auditors: All required authorizations
• • Efficient processing: Minimal effort for you
• • Advice included: Free improvement suggestions

Conclusion: The audit obligation depends on various factors. In case of uncertainties, you should seek professional advice to avoid legal risks.