Need for Audit Services in Switzerland in 2019

For the proper growth of the company, it is required that you perform the complete review of the workings of the company at regular intervals. This means evaluating and analysing all the books of accounts and anything that could affect the development of your company. This complete procedure is termed as an audit and it helps the management in understanding the workings of the company and taking any remedial measures if required.

With its easy taxation process, caring government and a low burden of tax on individuals as well as other legal entities, Switzerland is one of the most attractive places for entrepreneurs all over the world. The benefits this country provides for a business is the reason that majority of the global corporations have established an office in the country and more and more corporations are coming in to plant their feet in Switzerland’s business environment.

This blog will provide you with a deep understanding of what an auditis and what are the different audit types and the various audit filing requirements in Switzerland.

What is Auditing?

Auditing is a process in which all the different transactional records and the books of accounts of the company are examined with the aim of finding any fraudulent and being conducted in the company. There are standard audit procedures that need to be followed by a company while conducting an audit. The company first needs to perform an internal audit before hiring an external third party.

The end result of this audit process will be in the form of an audit report which would consist of the findings of the auditors. This report would help in the formation of a financial picture of the company and would help to take major decisions accordingly. The audit report will also allow the investor to actually take a verdict on whether to invest in the company or not by providing all the necessary details in one single place.

Types of Audit in Switzerland

According to the Swiss legislation, there are three types of an audit which can be performed on a company. These are as follows:

1.Regular Audit

A regular audit is the deep review of all the financial statements and the transactional records of the company. According to the Code of Obligations, Article 727 a regular audit is applicable to:

  • Swiss Companies listed on the Stock Exchange of the country
  • Companies whose annual turnover is 20 million CHF at the least
  •  Swiss companies comprising of at least 50 full-time employees
  • Any company with a balance sheet of 10 million CHF or above

Advantages of a Regular Audit

  • The regular audit will provide a concise report of the complete finances of the company
  • The audit process would be thorough and time intensive and would enable clear and sensible audit report
  • It will allow the auditor to follow any hunch they have in their mind 

2.Limited Audit

It is a less time-intensive process in comparison to the regular audit. A limited audit would only verify the numbers which are most significant to the company. This audit will not be a very detailed audit and thus would take less time. A limited audit can be applicable for:

  • Any company which is not under the subject of a regular audit
  • Companies which have less than 10 full-time employees

Advantages of a Limited Audit

  • As this audit is less comprehensive in comparison to a regular audit, it is less time consuming
  • Not scouring all the transactional records would save a lot of funds and would also save the efforts which an auditor will have to put in the auditing of the company
  •  The amount of freedom given to the auditors performing a limited audit is comparatively less

3.Waivered Audit

Any company which has 10 full-time employees or less can opt out of any kind of auditing process.

Audit Filing Requirements

In Switzerland, a company’s board of directors have the full responsibility of preparing all the documents required and to file these documents. The necessary requirements for audit filing are as below:

  • It is a mandate for the companies which are obligated to file their financial statements to file them within the six months after the ending of the financial year in the country.
  • It is absolutely necessary for the shareholders to approve of the accounts of the company in the Annual General Meeting.
  • It is not necessary for private companies to make the audited financial statements public.

From the information given above, we can figure out that calculating and filing corporate taxes could be a very complex process and may require external help. If you are looking to avail the services of a firm which would help to calculate and file taxes on your behalf, then Business Setup Worldwide can help you in this matter.

We at Business Setup Worldwide would provide you with the assistance you require and will also provide professional and helpful advice on how can you grow your business. We also provide a wide range of other services which would help to uplift your company to greater heights. To know more about us or our services do contact us, we would be delighted to help you.  

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