Audit
In some cases, the appointment of an external auditor is mandatory under applicable law. The requirements vary by country and by type of company.
For example, in France, Public Limited Companies (PLC) and Partnership Limited by Shares are required to appoint a statutory auditor, who is an external auditor, to review the annual accounts. Companies that exceed certain turnover or employee thresholds are also subject to this obligation.
In general, the requirement to appoint an external auditor is intended to enhance the transparency and reliability of the company’s financial reporting and to protect the interests of stakeholders such as shareholders, creditors, employees and customers.
However, even when the appointment of an external auditor is not mandatory, some companies may choose to do so to enhance the quality of their audit process and to benefit from an external and impartial view of their financial situation.
The thresholds :
- In France, Public Limited Companies (PLC) and Partnership Limited by Shares are required to appoint an auditor if they exceed two of the following three criteria for two consecutive years: a turnover of more than 8 million euros, a balance sheet total of more than 4 million euros and an average number of 50 employees.
- In the United Kingdom, companies that exceed two of the following three criteria for two consecutive years must appoint an external auditor: a turnover of more than £10.2 million, a balance sheet total of more than £5.1 million and an average of 50 employees.
- In the United States, the thresholds depend on the size of the company and the nature of its business. For example, publicly traded companies are required to appoint an external auditor if they have annual revenues in excess of $75 million.
- In the European Union, the European Accounting Directive provides that member states must set thresholds for the obligation to appoint an auditor. These thresholds vary by country and type of company.
We intervene on legal and contractual audit missions of listed companies, ETI, SMEs, family groups, associations, banks, financial management companies, investment funds in various sectors of activity.
One of the characteristics of the approach we develop is the constant search for simplicity and efficiency, so that the proposed solution remains adapted to the objectives and means of human-sized structures, while providing real added value.
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