The audit of the annual accounts is mandatory when certain economic thresholds are exceeded or specific circumstances occur (the obligation persists even in situations of insolvency or liquidation). For these purposes, companies must verify their accounts by an auditor if during two consecutive financial years (or in the first financial year since their incorporation, transformation, or merger) they exceed, at least, two of the following limits:

• Assets. If its volume of assets exceeds 2, 850, 000 euros.
• Turnover. If its annual turnover exceeds 5, 700, 000 euros.
• Employees. If the average workforce during the financial year exceeds 50 employees.

These economic limits have been increased by a European directive, which is pending transposition into Spanish regulations. Therefore, when that transposition occurs, the audit will be mandatory for those companies that exceed at least two of the following limits during two consecutive financial years:

• Assets. If its volume of assets exceeds 3, 565, 000 euros.
• Annual turnover. If its annual turnover exceeds 7, 125, 000 euros.
• Employees. If the average workforce during the financial year exceeds 50 employees (this limit will not change).

Please note that the law maintains the obligation to audit until two of the indicated thresholds are not met during two consecutive financial years.

Even if your company does not meet the aforementioned legal requirements, be aware that you will have to audit your accounts if you receive subsidies or public aid exceeding 600, 000 euros, or if you contract with the public sector for an amount exceeding 600, 000 euros and this sum represents more than 50% of your turnover. The accounts of the financial year in which the subsidies or aids are received, as well as the financial years in which the subsidized operations or investments are carried out, must be audited.

 

Our professionals will advise and help you assess your specific case and guide you on the steps to follow if your company is required to audit.