Audit

As chartered accountants, our mandate is to thoroughly review our clients’ financial statements to certify their accuracy and compliance with applicable accounting and regulatory standards.

Introduction to auditing

Auditing is the rigorous examination of a company’s financial statements by an independent auditor. In Switzerland, this practice is of the utmost importance, supporting the financial integrity of the economy and serving several crucial objectives:

• Ensure the accuracy of financial data for management decision-making.
• Provide shareholders and investors with an objective assessment.
• Help financial institutions assess the creditworthiness of companies.
• Guarantee accurate tax reporting for the government.

In this way, the Auditing division helps maintain Switzerland’s reputation for financial excellence, promoting transparency and trust in the business world.

Types of audit in Switzerland

In Switzerland, auditing is a regulated process, governed by a solid legal framework designed to ensure the financial integrity and reliability of an organization’s accounting information. The Audit Supervision Act (LSR), which came into force in 2008, has established a rigorous system of supervision and control for the country’s auditing activity.

The Swiss Federal Audit Oversight Authority (VAG) is responsible for regulating and supervising auditing in Switzerland. It is responsible for approving and supervising auditing firms, defining the applicable professional standards and ensuring compliance with current regulations.

The RSA distinguishes three main types of audit in Switzerland:

1. Ordinary audit: Mandatory for large commercial entities, this involves an in-depth examination of the financial statements, accounting records and internal control procedures by independent auditors, in accordance with Swiss Auditing Standards (NAS) and International Standards on Auditing (ISA). The objective is to provide reasonable assurance that the financial information is free from material misstatement.
2. Restricted audit: Intended for small and medium-sized companies, this is designed to provide moderate assurance on the financial statements, without requiring as exhaustive a review as the ordinary audit. Audit procedures are streamlined, but must still ensure that the accounts are free from material errors.
3. Special reviews: Carried out at the request of a third party (lender, investor, regulator, etc.), these focus on specific aspects of a company’s financial performance, such as investigating suspected irregularities or assessing compliance with particular regulations.

The Swiss regulatory framework for auditing is designed to ensure the reliability and transparency of financial information, while protecting investors and boosting confidence in the country’s financial system. The various forms of audit allow us to adapt our approach to the needs and characteristics of each organization, while maintaining high professional standards.

Legal and regulatory framework

The Swiss Code of Obligations (CO) sets out the basic requirements for the preparation of financial statements and annual accounts, as well as the auditing and publication obligations for these documents. All Swiss companies must comply with these requirements.

The Federal Auditing Supervision Act (LSR) plays a crucial role in monitoring the activities of auditors and auditing firms.

Professional organizations such as the Swiss Institute of Auditors (ISR) and EXPERTsuisse have drawn up professional standards to which companies must also adhere.

This legal and regulatory framework aims to guarantee the integrity, transparency and accuracy of published financial statements, in order to protect investors and other stakeholders against the concealment or manipulation of financial information. By complying, companies help to ensure the reliability and integrity of financial information in Switzerland.

Review process

Auditing is a key element for any company operating in Switzerland. This rigorous process is designed to verify the accuracy of financial transactions and ensure compliance with applicable laws and regulations. It is a thorough examination that must be carried out appropriately to ensure the integrity of financial results.

The accounting review process can generally be broken down into four main stages:

1. Internal control assessment:
   This first phase consists of examining the internal control procedures and processes put in place by the company to manage its financial transactions. An internal auditor evaluates the design and operational effectiveness of these controls, to ensure that the company complies with applicable laws and regulations.
2. Analysis of financial statements:
   The auditor then carries out a detailed examination of the company’s various financial statements, i.e. the balance sheet, income statement, cash flow statement and notes. He verifies that these documents have been prepared in accordance with Swiss accounting standards (Swiss GAAP FER), the generally accepted accounting framework in Switzerland.
3. Verification of accounts:
   This stage consists of a detailed process in which the auditor individually examines the company’s transactions to ensure that they are correctly recorded in the accounting books. Particular attention is paid to the compliance of these transactions with current laws and regulations, particularly in the area of taxation.
4. Preparation of the audit report:
   Finally, the auditor draws up a detailed report summarizing the findings of the audit. This document, prepared in accordance with Swiss Audit Standards (SAS), clearly indicates whether the company’s financial statements are fairly presented and comply with generally accepted accounting principles.

This rigorous accounting review process is essential to maintain the company’s financial credibility and ensure compliance with legal and regulatory requirements applicable in Switzerland. It also enables us to identify areas for improvement and make informed decisions to optimize the organization’s financial performance.

Benefits of auditing

In Switzerland, companies are required by law to undergo recurrent accounting audits to ensure the integrity and compliance of their financial records with current accounting standards. This auditing process plays an essential role for companies and their stakeholders.

From an organizational point of view, an audit provides an in-depth analysis of the company’s financial situation, identifying areas of over- or under-performance. This detailed information facilitates informed strategic decision-making, optimizing financial performance and sales growth.

From a regulatory point of view, accounting audits ensure compliance with tax obligations, thus preventing penalties in the event of non-compliance. They are also a key tool in the fight against fraud and contribute to transparent corporate governance.

For stakeholders, these audits provide guarantees of a company’s financial soundness, helping investors to assess risk and make informed investment decisions. Similarly, employees benefit from greater stability and better working conditions within a financially sound organization. Regulatory compliance also enhances the company’s reputation, making it easier to recruit talent and improving employee satisfaction.

In conclusion, auditing is an essential process for ensuring the reliability of financial data, regulatory compliance, informed strategic decision-making and stakeholder confidence. It thus makes a decisive contribution to the good governance and sustainable performance of Swiss companies.

Why call on us?

When you choose our firm for your accounting audit, you benefit from recognized expertise and top-quality service, essential to your company’s financial health and compliance. Here are the main reasons to place your trust in us:

1. In-depth expertise: Our team of chartered accountants has in-depth knowledge of Swiss and international accounting standards, as well as of constantly evolving regulations.
2. Tailor-made approach: We adapt our methodology to the size and specific features of your company, whether it’s a regular, limited or special audit.
3. Rigor and precision: Our auditing processes are meticulously designed to ensure the accuracy and reliability of your financial statements, reinforcing your company’s credibility.
4. Added value: Beyond mere compliance, we identify opportunities to improve your financial processes and overall performance.
5. Independence and objectivity: Our status as an independent auditor ensures an unbiased assessment, crucial for the confidence of investors and stakeholders.
6. Risk management: We help you to identify and mitigate potential financial risks, thereby contributing to the sustainability of your business.
7. Respecting deadlines: We are committed to respecting legal and regulatory deadlines, thus avoiding any delays or penalties.
8. Ongoing support: Our team is on hand throughout the year to answer your questions and advise you on best accounting practices.

By entrusting us with your accounting audit, you are choosing a trusted partner who not only guarantees the conformity of your financial statements, but also contributes to optimizing your financial performance and protecting your long-term interests. Our commitment to excellence and our in-depth understanding of the Swiss financial landscape make us the ideal choice to support your company’s growth and success.