Appointing an auditor for a limited liability company, cooperative, general partnership or limited partnership
According to the Auditing Act, an auditor must be appointed for a limited liability company, cooperative, general partnership or limited partnership if two of the following conditions were met in the previous financial year and the one immediately preceding it:
- The balance sheet total came to more than EUR 100,000
- Net sales or comparable revenues were more than EUR 200,000
- The average number of employees was greater than three.
If a company engages in buying and managing securities and has significant control over the management of another organisation with a legal obligation to keep books (chapter 1, section 8 of the Accounting Act), it must appoint an auditor, even if it does not meet the conditions specified above.
The auditor appointed for a limited liability company, cooperative, general partnership or limited partnership must be a KHT or HT auditor or auditing firm. Publicly traded companies and organisations must always appoint a KHT auditor or auditing firm. Companies that meet two of the following conditions must also appoint a KHT auditor:
- The balance sheet total is more than EUR 25 million
- Net sales or comparable revenues are more than EUR 50 million
- The average number of employees is greater than 300.
Even if the above provisions of the law do not require a company to appoint an auditor, its articles of association or partnership agreement may state otherwise. An auditor must be appointed if the articles of association so require.
A deputy auditor does not need to be appointed if a KHT or HT auditing firm is selected as auditor. However, each individual appointed as auditor must have an authorised deputy auditor or auditing firm.