When Is a Swiss Company Required to Undergo an Audit? (Ordinary vs. Limited Audit)
Audit Requirements in Switzerland
Swiss companies must comply with legal audit requirements depending on their size and economic relevance. The law distinguishes between ordinary audits and limited audits, each with different levels of depth and complexity.
Ordinary Audit: For Larger Companies
An ordinary audit (ordentliche Revision) is mandatory if a company exceeds two of the following thresholds for two consecutive years:
Balance sheet total: CHF 20 million
Revenue: CHF 40 million
250 full-time employees
It also applies to listed companies or those preparing consolidated financial statements. This audit involves a detailed review of financial statements and internal controls, providing a high level of assurance.
Limited Audit: Standard for SMEs
Companies that do not meet the above thresholds typically require a limited audit (eingeschränkte Revision), provided they employ more than 10 full-time staff.
This type of audit is less extensive and focuses on plausibility checks rather than full verification. It is more cost-efficient and suitable for most SMEs.
Professional support in areas like accounting and payroll helps ensure compliance.
Audit Opt-Out for Small Businesses
Companies with fewer than 10 full-time employees can waive the audit requirement if all shareholders agree. This opt-out is common among small businesses and start-ups.
However, proper bookkeeping remains legally required, regardless of audit obligations.
Practical Considerations
Audit requirements may change as a company grows. Regularly reviewing thresholds is essential to remain compliant and avoid legal risks.
Planning ahead—especially during company formation—can help define the right audit approach early on.
For official legal details, see the Swiss Code of Obligations (Art. 727 ff.):
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