Auditing
An audit in accounting consists of the checking and the verification of the accounting documents by an independent company, provided that the objective is the emitting of a report that proves the accuracy of the information to third parties.
When is an audit obligatory?
The most common cases concern businesses of the following characteristics:
- When they exceed the following parameters during two consecutive years:
- Assets: 2.850.000 €
- Turnover: 5.700.000 €
- Number of employees: >50
- When they receive subsidies or benefits from the State or public organizations exceeding 600.000 €
- When they realise construction work, deliver services or goods to the State and remaining public organizations for more than 600.000 €
- By request of a number of shareholders, which represents at least 5% of the share capital, of those companies that are not subject to an audit. (LSA art. 205)
- Public Limited Sports Companies. (L 10/19909 art. 26 and 36)
- Electricity Companies. (RD 2550/1994)
- Foundations. (L 30/1994 art. 23)
Other types of reports to be realised by an auditor
Besides for the auditing of accounts, you will need an auditor in the following cases:
- Special reports on the evaluation of shares, issuing of convertible bonds, increase of share capital by loan offsetting, increase of share capital charged to reserves, reduction of share capital, etc.
- Limited Review.
- Checking of the justifying costs for subsidies.
- Expert reports.