Auditors in Switzerland – when is one required, and what are your options? In Switzerland, many companies are legally obliged to have an audit carried out. But which companies need an auditor? What is the difference between a regular and a limited audit? And what are the advantages of a voluntary audit? We answer the most important questions to help you make the right decision for your company.
The most important points in brief
- An auditor is required by law for many Swiss companies, depending on the legal form, turnover and number of employees.
- There are two types of audits: the ordinary audit for larger companies and the limited audit for smaller companies.
- Small businesses can do without an auditor under certain conditions (opting out).
- An audit offers many advantages, including increased credibility and better financial control.
- The right choice of auditor is crucial in order to meet legal requirements and to minimize risks.
1. When does your company need an auditor?
Not every company in Switzerland has to have an audit carried out. The obligation depends on various factors, including the legal form, turnover and number of employees.
Ordinary audit – obligation for large companies
A proper audit is mandatory for companies with the following characteristics:
- Balance sheet total of at least CHF 20 million
- Turnover of at least CHF 40 million
- 250 or more full-time positions on an annual average
This audit is extensive and not only examines the annual financial statements, but also internal controls and risk management systems.
Limited audit – for most SMEs
Companies that have at least 10 full-time positions on an annual average, but do not meet the criteria for a proper audit are subject to a limited audit. This is less comprehensive and focuses on the annual financial statements.
Opting out – waiving an auditor
Small businesses with fewer than 10 full-time positions can do without an auditor if all shareholders agree. This saves costs, but can affect the credibility of the company.
2. Difference between ordinary and limited audit
The choice between a regular and a limited audit depends on the size of the company and the legal requirements.
Obligation for:
- Ordinary audit: large companies
- Limited audit: SMEs with 10+ employees
Audit depth:
- Ordinary audit: comprehensive
- Limited audit: Superficial check
Internal controls:
- Ordinary audit: are checked
- Limited audit: No audit
Risk management:
- Ordinary audit: part of the audit
- Limited audit: Not part of it
Costs:
- Ordinary audit: higher
- Limited audit: Lower
While a proper audit includes detailed audits, the limited audit is more of a plausibility check of the annual financial statements.
3. Advantages of an auditor
Even if there is no legal obligation, having an auditor can bring many advantages.
- Increased credibility with investors and banks:
companies with audited financial statements have better chances of financing and partnerships. Banks and investors prefer audited annual financial statements, as they offer more security. - Early detection of risks
an audit reveals financial weaknesses and helps to identify problems at an early stage. This allows companies to take countermeasures in good time. - Better corporate governance and transparency:
regular auditing of the annual financial statements ensures improved accounting and strengthens the trust of internal and external stakeholders. - Optimization of tax planning:
an external audit can minimize tax risks and uncover potential savings.
4. Audit procedure
An audit involves several steps and can take several weeks, depending on the size and structure of the company.
Step 1: Preparation
The company provides all the necessary documents, including:
- Annual financial statements and accounting documents
- Contracts and documentation on assets
- Tax documents and social security records
Step 2: Carrying out the audit
The auditor analyzes the accounts, checks documents and examines internal processes. In the case of a regular audit, the risk management of the company is also assessed.
Step 3: Reporting
After completing the audit, the auditor prepares a report for the shareholders' meeting, in which the results are summarized and any deficiencies are pointed out.
5. How do you choose the right auditor?
An auditor should be chosen carefully. The following factors play a role:
- Approval and experience: the auditor must be approved by the Federal Audit Oversight Authority (RAB).
- Industry experience: Auditors with experience in your industry understand specific challenges better.
- Costs: the fees depend on the size of the company and the audit effort.
6. Costs of an audit in Switzerland
The cost of an audit varies depending on the type of audit and company size.
Typical price ranges:
- Limited audit: CHF 3,000 – 10,000 per year
- Ordinary audit: CHF 10,000 – 50,000 per year
Conclusion – How to find the right
auditor for your company
An auditor is mandatory for many companies in Switzerland, but can also bring great advantages voluntarily. It increases transparency, improves financial planning and strengthens trust among investors and partners. Companies should check at an early stage whether they need an auditor and what type of audit makes sense for them.
Are you looking for a reliable auditor for your company?
We will help you to find the right solution – professional, efficient and individually tailored to your company.
