Auditing

Annual financial statements are audited for correctness and accuracy by independent auditors. A legal entity (fiduciary company or audit association) may also serve as auditor. It must have the proper qualifications and be independent. Under new legislation, the duty to have accounts audited depends on the size and economic importance of the corporation (AG) or limited liability company (GmbH). Regular audits apply to companies that are required to prepare consolidated financial statements and also to companies listed on the stock exchange or if two of the three measures below are reached in two successive fiscal years:

• Total assets of CHF10million
• Annual sales of CHF20million
• An average headcount over the year of 50 employees or more

If these conditions are not met, then the annual financial statements are only subject to a limited audit (questioning of management, appropriate detailed checks, analytical audit procedures, etc.). The audit may also be dispensed with entirely, subject to the approval of the shareholders, if the company has no more than an average of ten full-time positions over the year.