Grupo Asegi has been carrying out statutory and voluntary audits for SMEs, cooperatives and social economy entities in the Basque Country and Navarra for more than 40 years.
A company is required to be audited when it exceeds, over two consecutive financial years, at least two of these three thresholds: total assets above €2,850,000, annual turnover above €5,700,000, or an average workforce of more than 50 employees.
The three statutory audit thresholds
Total assets above €2,850,000
Total assets are calculated as the sum of all the company’s assets at the close of the financial year: fixed assets, inventories, receivables, cash and financial investments.
Turnover above €5,700,000
Turnover includes the income arising from the company’s ordinary activity: sales of goods and provision of services, excluding VAT.
Average workforce above 50 employees
The average workforce is calculated by adding the employees at the start and at the end of the financial year and dividing by two.
How the “two of the three over two financial years” rule is applied
A company falls within the obligation when it exceeds at least two of the three thresholds over two consecutive financial years. Exceeding them in one isolated year is not enough.
The company ceases to be obliged when, again over two consecutive financial years, it falls back below at least two of the three thresholds.
Other cases of statutory audit
- Companies receiving public grants above certain amounts.
- Companies issuing listed securities.
- Financial institutions and insurers.
- Public interest entities.
- Companies in insolvency proceedings.
- Cooperatives meeting certain requirements.
- Any company where holders of 5% of the share capital request it.
Voluntary audit: when it is worth it even if not required
- Applying for bank financing: most institutions require audited accounts above a certain amount.
- A new partner or investor coming in: it gives assurance about the company’s real position.
- Preparing to sell the company: buyers always require an audit as part of due diligence.
- Internal verification: it helps detect errors or irregularities.
- Contracts with large clients: some require suppliers with audited accounts.
How a company chooses its auditor (criteria)
- Registration with the ROAC (Registro Oficial de Auditores de Cuentas).
- Experience in the client’s sector.
- Technical capability of the assigned team.
- Independence.
- Reputation and track record.
- Cost and efficiency.
Grupo Asegi audit services
- Statutory audit of annual accounts.
- Voluntary audit.
- Audit of grants.
- Audit of R&D&i projects.
- Special reports for third parties.
- Expert economic reports in litigation.
- Insolvency administration.
- Company valuation.
Frequently asked questions
- Does a small SL have to be audited?
- Only if it exceeds, over two consecutive financial years, at least two of the three thresholds.
- What if I exceed the threshold in one year only?
- Exceeding the thresholds in a single year does not create an obligation to audit.
- Is the audit carried out every year?
- Yes. Once the company falls within the obligation, the audit is annual and mandatory for as long as the conditions are met.
- How much does a statutory audit cost?
- For a standard SME, the indicative range is between €4,000 and €15,000 a year.
- What happens if I am required to be audited and I am not?
- The company cannot file its annual accounts with the Commercial Register, which brings closure of the register entry, administrative penalties and personal liability for the directors.
General information only; it does not replace professional advice. Foral legislation changes frequently — check the date it was last updated.