Do my annual accounts need to be audited?
One of the most common questions among business owners is: Should my financial statements be audited? The short answer is that it depends on the size and legal form of your business. In this blog post, we’ll go over when an audit is necessary, why it’s important, and how you can get professional help.
What does audit of financial statements mean?
An audit of your financial statements means that an independent, approved auditor reviews your company’s financial statements to ensure that they are correct and comply with legal requirements. The auditor checks whether the financial information in the financial statements is true and free of material errors.
When should an annual report be audited?
Whether your annual accounts need to be audited depends primarily on the size and legal form of your company. Here are the general rules:
- Private limited companies (ApS) and public limited companies (A/S): As a rule, they must have their accounts audited, unless they can take advantage of the rule on audit freedom for small companies.
- Smaller companies (B accounting class): If your company does not exceed two of the following three limits in two consecutive financial years, you may be exempt from auditing:
- A balance sheet total of DKK 4 million.
- A net turnover of 8 million DKK.
- Average number of employees of 12 full-time employees.
- Personally owned businesses: Including sole proprietorships , are usually not required to be audited, but can choose to do so voluntarily to ensure the credibility of the accounts.
If you are still in doubt, contact us today.
Why is auditing important?
Auditing ensures that your company’s accounts are fair and comply with the law. It offers several benefits:
- Increased credibility: An audited financial statement can strengthen the company’s credibility with investors, banks and business partners.
- Ensures compliance with legislation: Auditing helps ensure that the accounts comply with applicable regulations.
- Prevents errors: An auditor can identify errors and deficiencies in the accounts so that they can be corrected.
Different types of auditing
There are several types of audits, depending on your company’s needs:
- Extended review: A more limited check often used by smaller businesses.
- Audit: The most comprehensive form of control, where the auditor reviews all significant parts of the financial statements.
- Review: A lighter review that focuses on superficial checking.
Benefits of getting professional help with auditing
At Summ, we offer professional help with annual accounts and auditing. Our accounting consultants have extensive experience with all types of companies and can help with:
- Ensure that your business complies with all legal requirements
- Minimize the risk of accounting errors
- Build credibility with authorities and investors
Contact Summ for professional advice
Are you unsure whether your annual accounts should be audited? Contact Summ today for a free, no-obligation consultation . We will help you get your company’s accounts under control – professionally and efficiently.
n virksomheds regnskab – professionelt og effektivt.
