Ordinary audit
In accordance with the Swiss Code of Obligations (CO), certain companies are required to undergo an ordinary audit of their annual financial statements once they reach specific size thresholds.
According to Art. 727 para. 1 point 2 CO, a company is subject to an ordinary audit if it exceeds two of the following criteria in two consecutive business years:
- a balance sheet total of 20 million francs
- sales revenue of 40 million francs
- 250 full-time positions on annual average
In this case, the company must appoint a licensed audit expert as the statutory auditor, in accordance with the provisions of the Swiss Audit Oversight Act (AOA).
The statutory auditor reviews whether the annual financial statements comply with legal requirements, the articles of association, and the chosen accounting standards, or the proposal of the board of directors regarding the appropriation of retained earnings aligns with the law and the company statutes. In addition, the audit report submitted to the general meeting must confirm whether the company maintains an internal control system (ICS) in accordance with stipulations of Art. 728a para. 1 point 3 CO.
The audit expert prepares both an audit report addressed to the general meeting and a comprehensive report for the board of directors, the later providing details on the audit process, key findings, accounting issues, and ICS observations.
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We are PRÜFAG — an experienced Swiss firm based in Zurich, specialising in audit, fiduciary services, and payroll compliance reviews. Since 1980, our highly skilled team and comprehensive service portfolio have been helping our clients safeguard their financial integrity and ensure their compliance with laws and regulations.
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Ordinary audit – Legal obligation, delivered with expertise
Reaching the thresholds for an ordinary audit in accordance with the Swiss Code of Obligations (CO) marks an important milestone in the company’s development. It not only shows economic growth, but also that your company is entering a new phase of financial accountability and transparency requirements.
In today’s increasingly regulated business environment, trust is a crucial success factor. The statutory audit enhances that trust – through an independent audit, transparent financial reporting, and compliance with legal standards.
At PRÜFAG, we serve as the statutory auditor for companies across various industries. We distinguish ourselves through dedicated service, flexibility, and the professionalism of our licensed audit experts. Our audits follow risk-based approaches, tailored to your company’s structure and needs – for a compliant, efficient, and value-adding statutory audit.