Many entrepreneurs ask us whether we can recommend an auditor to them, even if an auditor is not required. Many entrepreneurs believe that all entrepreneurs must obtain an auditor: However, this is not the case.
So-called small companies do not have to obtain auditors if in the previous financial year or in the one before that none or just one of the following conditions are fulfilled:
- The balance sheet total is more than 100,000 euros
- The net sales are more than 200,000 euros
- More than three employees are present
Private entrepreneurs and private shops also do not have to obtain auditors. Auditing is mandatory for companies in which the above-mentioned limits are exceeded. A small company must appoint an auditor if it is required by the company’s articles of association, partnership agreement or rules. However, if this requirement is changed in the rules, the company does not have to appoint an auditor.
Choosing an auditor is the responsibility of the company’s highest decision-making body. The company must choose an authorized auditor (certified public accountant). Associations can, however, choose an auditor that is not authorized. Housing companies can choose a resident as an inspector for its operations.
As per the Auditors Act, the auditors’ report must include a statement of whether the company’s financial statement and annual report is done in accordance with the accounting framework and gives a true and fair view of the company’s result and financial position. In addition, the auditors’ report declares whether there are any contradictions in the financial statement and annual report.