Statutory Audit Requirement: Who Qualifies and What You Get
Learn if your company meets the financial thresholds for mandatory audits and what the process involves for your business.
A statutory audit is a mandatory review of a company's financial records to ensure they are accurate.
Who it's for
This requirement applies to companies that meet at least two of the following three criteria:
- Annual turnover is greater than €12m.
- Total assets are greater than €6m.
- The company employs more than 50 people.
What you get
The process results in certified financial statements. These documents provide shareholders with an official, verified account of the company's financial health.
What it costs you
You will need to pay significant annual audit fees to a professional firm. Additionally, your staff will need to dedicate time to internal preparation and gathering necessary documentation.
The catch to know
Many small companies are caught off guard because they do not realize they have met the required thresholds until they receive an official audit notice.
How to apply
- Monitor your annual turnover, assets, and employee count closely.
- Determine if you meet two of the three required thresholds.
- Contact a qualified accountant to begin the audit process.