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Limited statutory examination

Who is required to undergo a limited statutory examination?

As the name already suggests, the limited statutory examination is less extensive in scope than a full audit. It is designed especially for smaller companies. The Swiss Code of Obligations (Art. 727 CO) requires a limited statutory examination whenever the criteria for a statutory audit are not met.

Companies in Switzerland that do not meet the thresholds for a statutory audit are subject to a mandatory limited statutory examination. This type of audit is aimed at SMEs - often associations, foundations or smaller businesses - that do not exceed certain thresholds.

If you choose BDO to carry out your limited statutory examination, you’ll benefit from our support throughout the entire audit process - from analysis of the conditions to performance of audit procedures and final reporting. Once the limited statutory examination has been completed, the findings are shared in a report to the general meeting. Unlike the statutory audit, the limited statutory examination does not include a comprehensive assessment of the internal control system (ICS).

Our experts audit your financial statements in accordance with legal requirements and ensure compliance with all relevant provisions. As a member of EXPERTsuisse, we uphold the highest quality standards.

Trust in our experts for an efficient audit that meets all legal requirements. As our client, you benefit from our comprehensive audit expertise.

3 good reasons to choose BDO as your auditor

local roots
internationally connected

With over 40 offices in Switzerland, BDO is always close by – whether you’re in Zurich, Bern, Solothurn, Aarau or Lucerne. At the same time, BDO Switzerland is part of the global BDO network, giving you access to international audit expertise in over 150 countries.

360°
expertise

At BDO, our experienced team of specialists is highly knowledgeable in all aspects of limited statutory examinations. This means we can offer you comprehensive advice tailored specifically to your company's individual needs.

Ready for
the future

Our experts support you in making informed decisions for the future of your company. We seek to work with you long term as your partner, advising you on how to best leverage the audit to ensure continued compliance.

What services does BDO offer as part of a limited statutory examination?

Our experts provide hands-on support, taking into account the applicable provisions and requirements and always considering the specific needs of your company.

BDO services for limited statutory examinations include:

Verifying whether you meet the size criteria defined in Art. 727 CO
Checking the plausibility of the annual financial statements
Auditing the accounting records
Verifying the correctness of the financial information
Reporting on any significant risks or deficiencies identified
Preparing an audit report for the attention of the general meeting in accordance with legal requirements (Swiss Code of Obligations) or other financial reporting standards (e.g. Swiss GAAP FER)
Reviewing whether the company is subject to a mandatory audit or can make use of options to opt out (see FAQs for further details).
Advising on when the organisation can opt out of a limited statutory examination, or assessing based on the overall circumstances whether a voluntary limited statutory examination could make sense for your company, foundation or association even if you are not (yet) legally required to undergo one.

Limited statutory examination in your area

You can be sure that there’s a BDO office near you - we have more than 40 locations in Switzerland, including in Zurich, Bern, Lucerne, Solothurn and Aarau. Whether you prefer online meetings or personal visits, we’re here to deliver professional advice and answer all your questions about the limited statutory examination. We look forward to supporting you.

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Are dual engagements permitted for the limited statutory examination?

BDO is your one-stop shop

Dual engagements are generally permitted in the case of voluntary limited statutory examinations. A dual engagement is when a provider is simultaneously involved in accounting and auditing. However, team and organisational aspects must be strictly separated. For example, auditors must never verify their own work in order to maintain the dual control principle and ensure independence.

At BDO, we take targeted measures to ensure that dual engagements are carried out properly and transparently. The benefit for you is direct access to a range of BDO services that are delivered efficiently, professionally and cost-effectively. Thanks to the dual engagement, you deal with one personal contact at BDO who can provide expert assistance with all your questions.

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When is it possible to waive the limited statutory examination?

Under certain conditions, it is possible to opt out of the limited statutory examination.

In Switzerland, SMEs can be exempted from this statutory auditing requirement if they do not meet the size criteria specified in Art. 727 CO.

According to Art. 727a para. 1 CO, limited companies, limited liability companies and cooperatives may waive the limited statutory examination with the consent of all shareholders provided they employ no more than ten full-time equivalents on average over the year and do not exceed the size criteria in terms of total assets and revenue.

This waiver applies from the beginning of the coming financial year and must be registered with the commercial register before the start of the financial year. We can help you to check the conditions for opting out.

Solutions tailored to your company

Start-ups

Start-ups subject to a mandatory audit requirement can rely on our expertise in the following areas:

Audit of the annual financial statements
Advice on compliance with the audit requirement in the early stages of your start-up
Advice on options to opt out
Reporting

SMEs

We support SMEs with the following challenges, provided they do not exceed the size criteria set out in Art. 727 CO:

Audit of the annual financial statements
Advice on options to opt out or opt up (i.e. to undergo a voluntary statutory audit)
Reporting

NPOs (association, foundation, etc.)

Non-profit organisations, foundations and associations can count on our expertise if they are required to undergo a limited statutory examination. Our services include:

Advice on whether the examination is mandatory
Audit of the annual financial statements
Support in ensuring compliance with legal and regulatory requirements
Reporting

Public authorities

BDO has comprehensive know-how in performing audits for public authorities. We deliver our audit services in accordance with the Swiss Auditing Practice Statement 60 as well as the applicable legal provisions at cantonal and municipal level. Throughout the process, we liaise closely with the responsible municipal audit bodies (financial and business audit committees, and finance committee).

Full or limited-scope audit of the municipal or cantonal financial statements.
Support for the municipal audit authority in auditing the annual financial statements. A BDO expert takes care of all the key steps in the financial audit and guides the audit authority skilfully and systematically through the audit of the annual financial statements.

Start-ups

Start-ups subject to a mandatory audit requirement can rely on our expertise in the following areas:

Audit of the annual financial statements
Advice on compliance with the audit requirement in the early stages of your start-up
Advice on options to opt out
Reporting

Frequently asked questions about the limited statutory examination

What’s the difference between a statutory audit and limited statutory examination?

The main difference between a statutory audit and a limited statutory examination is the scope.

A statutory audit is a very comprehensive type of audit that is primarily used for large and economically significant companies. It involves a complete audit of the annual financial statements and a detailed assessment of the accounting and internal processes, such as the internal control system (ICS). A limited statutory examination is less comprehensive and tailored to smaller companies that do not meet the thresholds for a statutory audit.

When should an organisation have a limited statutory examination?

A limited statutory examination is the right approach if the legal requirements of Art. 727 CO apply to a company or association but the organisation does not (yet) exceed the thresholds that would require a full statutory audit. The limited statutory examination offers companies a cost-effective way of having their annual financial statements audited by an independent auditor without the comprehensive scope of a full audit.

A limited statutory examination is ideal, for example, for SMEs that wish to focus on the plausibility of their annual financial statements. The auditors verify whether the accounting complies with the legal requirements set out in the Swiss Code of Obligations (CO). If the company applies Swiss GAAP FER or other recognised accounting standards, compliance with these standards is also checked.

Our experts can help you determine whether a limited statutory examination is the right choice for you.

What should foundations know about the limited statutory examination?

Foundations are generally subject to a statutory audit or limited statutory examination. However, they may be exempted from this audit obligation if the following conditions are met:

Total assets are less than CHF 200,000 for two consecutive years
The foundation does not receive any public donations or grants, and
No audit is needed for a reliable assessment of the foundation

If the above conditions are met, the foundation deed must be amended to reflect these circumstances. It is also possible for a foundation to voluntarily opt for a statutory audit instead of a limited statutory examination (known as ‘opting up’). The exact requirements may vary depending on the nature and size of the foundation.

What should associations know about the limited statutory examination?

In Switzerland, associations are generally subject to a mandatory audit, with the scope depending on their size and financial circumstances. Under certain conditions, however, it is possible to opt out of the limited statutory examination. This is possible if all members unanimously agree and the association’s statutes provide for the waiver option.

Associations must undergo a limited statutory examination if their total assets exceed CHF 1 million or their annual sales revenue exceeds CHF 250,000. In such cases, the association must appoint an auditor to examine its annual financial statements. We would be happy to assist you in determining the specific requirements applicable to your association.

The high quality and professionalism of BDO in auditing our financial statements and areas of expertise consistently give me a very good feeling.

Jörg HuggenbergerHead of Finance Department, Municipal Administration of Volketswil

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Limited statutory examination

Who is required to undergo a limited statutory examination?