Whether a statutory audit or audit revision of the annual financial statement (individual financial statement) is legally required, mainly depends on two criteria: the obligation to financial reporting and the size of the enterprise.

Financial Reporting

Anyone under an obligation to register their company resp. their name in the Commercial Register and conducting a business run on commercial lines, is also under obligation to proper accounting (PGR Art. 1045). Companies harmonized with European Law, which include stock companies, limited commercial partnerships, limited liability companies as well as, under certain circumstances, collective proprietorships and limited partnerships, are obliged to proper accounting, even if they do not conduct a business run on commercial lines. Legal entities not obliged to proper accounting (e. g. not commercially active institutions and foundations) must keep appropriate records with due regard to the principles of proper accounting.

The law stipulates that companies with an obligation to proper accounting must submit their financial statement, consolidation or, where appropriate, annual report to a revision.

Size Criteria

Companies harmonized with European law are classified by their size (balance sheet total, net turnover, number of employees) as micro, small, medium-sized or large enterprises (PGR Art. 1064). Micro and small enterprises are subject to audit review, while medium-sized and large companies are subject to auditing of financial statements (PGR Art. 1058). All other businesses, which are subject to audit duty, are also obliged to an audit review. Every business, however, is free to decide on a statutory audit instead of an audit revision.