Audit at ApS

Danish limited liability companies are required to submit annual financial statements. It is important that these reports reflect the actual economic situation of the company as accurately as possible. For this reason, most ApS companies are required to have their financial statements audited, i.e. reviewed by an auditor. The purpose of the audit is to ensure that the contents of the financial statements are consistent with the company’s actual assets, liabilities, income and expenses.

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Limited liability companies (ApS) are subject to an audit obligation. The only exception is for small companies classified as category B if:
– their balance sheet total does not exceed DKK 4 million,
– their net turnover does not exceed DKK 8 million,
– they have fewer than 12 full-time employees.

If the company is not obliged to have an audit, it can still choose voluntarily to have its annual accounts reviewed by a certified public accountant. The owners of the company can take such a decision at an extraordinary shareholders’ meeting. This decision becomes valid once it is documented in the minutes of the meeting, which must be registered with the Commercial Office.

One of the main reasons why companies decide to voluntarily carry out an audit is the desire to maintain a reliable picture of the company’s financial situation and to reassure investors, board members and other parties who may have an economic interest in the company. This is because the auditor acts as an independent public trustee who comes in from outside the company and assesses the company’s financial position.