Does your company exceed at least two of these thresholds: EUR 4 million in balance-sheet assets, EUR 8 million in net revenue or an average of 50 employees? Then it is subject to a mandatory annual audit. This is an independent review of the figures in the financial statements designed to strengthen the trust of lenders and investors in your firm. If that is what you are after, read on to see why it matters.
Key features of the audit
Since 2018, the annual financial statements audit has been mandatory for medium-sized enterprises. It is worth seeing the audit as an advantage for the company as much as a duty, because it provides:
- greater trust in the firm's reporting from shareholders, financial institutions, investors and counterparties;
- reliable information about the company's finances and weaknesses in its internal control system;
- the chance to spot inaccuracies and errors in the accounts and correct or eliminate them quickly;
- evidence to investors that a deal is sound and your organisation is trustworthy.
You can be confident that the audit results will be objective, since independent experts carry it out. So if you are serious about improving your company's image with users of its statements, investors and lenders, embrace the audit. First and foremost it benefits you: it lets you find weaknesses in the existing system, fix them and make the business more efficient.
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