Ordinary audit for Swiss companies

Your Swiss company (AG, GmbH, or cooperative) requires an ordinary audit under CO Art. 727 if it exceeds two of the following three thresholds in two consecutive financial years: CHF 20 million in total assets, CHF 40 million in revenue, or 250 full-time employees. Publicly listed companies and groups that must prepare consolidated accounts are also subject to ordinary audit regardless of size. Shareholders holding 10% or more of share capital can also request an ordinary audit at any time. Book a consultation and we will confirm your exact obligations.

Positive assurance means the auditor confirms, based on a full examination of your financial statements and internal controls, that the accounts present a true and fair view in all material respects. This is the highest level of audit assurance available under Swiss statutory law and is significantly more rigorous than the negative assurance issued under a limited audit.

An internal control system (ICS) is the set of processes and controls your company uses to ensure accurate financial reporting, prevent errors, and safeguard assets. Under an ordinary audit, the auditor is required to assess whether a functioning ICS exists and report on its adequacy to the board. Companies without adequate controls will receive observations in the board report, which may need to be addressed before the next audit cycle.

An ordinary audit is a full examination of your financial statements and internal control system, resulting in positive assurance. A limited audit is a review using analytical procedures and targeted inquiries, resulting in negative assurance. The ordinary audit is substantially more comprehensive, more time-intensive, and subject to stricter independence requirements. It also includes a separate, detailed report to the board of directors, which the limited audit does not.

No, Swiss auditing standards set strict independence requirements for ordinary audits, and the same firm cannot provide both services. Nexova ensures full compliance by working with an established, independent audit firm to conduct the audit. We manage your accounting and coordinate the entire process, while the audit itself is conducted independently. This structure gives your stakeholders the highest level of credibility.

The timeline depends on the size and complexity of your company and the state of your financial records. Nexova clients with current, well-organized books move through the process most efficiently. We provide a clear timeline estimate at the start of every engagement.

The auditor documents any findings in both the report to the general meeting and the detailed report to the board. Nexova reviews these findings with you and helps you implement any necessary corrections, whether that involves adjusting your financial statements, strengthening internal controls, or updating processes.

The audit body is the independent organ that examines your company's annual financial statements. For an ordinary audit, the requirements are stricter than for a limited audit: the audit body must be led by a licensed audit expert (Revisionsexperte) — a higher qualification than the licensed auditor sufficient for a limited audit. It must be fully independent of the company, with no exceptions, and registered with the Federal Audit Oversight Authority (RAB). At Nexova, we work with an established, independent audit expert and handle all coordination for you.

An ordinary audit delivers the highest level of assurance available under Swiss law. Beyond legal compliance, it provides a comprehensive review of your financial statements and an independent assessment of your internal control system, giving management and the board a clear picture of where controls are strong and where improvements are needed. This level of scrutiny strengthens credibility with banks, investors, regulators, and transaction counterparties. It is also why shareholders holding 10% or more of share capital sometimes request an ordinary audit voluntarily, even when only a limited audit is legally required, as the higher assurance level can be decisive in financing or M&A contexts

If your company falls below two of the three size thresholds (CHF 20M assets / CHF 40M revenue / 250 FTE) for two consecutive financial years, it may be eligible to switch to a limited audit. The change requires a resolution and must be reflected in the appointment of the audit body. Nexova can assess whether a downgrade applies to your situation and manage the transition.