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Audits in Sweden

Audits in Sweden

An auditor in Sweden is appointed for the purpose of assessing the company’s annual reports, and making sure that they are accurate. The auditor’s only role is the verification of, and not the management and preparation of these accounts.

Not all companies are subject to a mandatory annual audit in Sweden, and this also means that they will not be required to appoint their auditor. Our team highlights the main conditions for audit in the country and can provide detailed information to those interested in company formation in Sweden.

What Swedish companies need to appoint an auditor?

Limited companies are required to appoint an auditor in Sweden unless they qualify for the exemption (see below). They can either appoint an authorized auditor or an approved auditor.

The company’s shareholders are the ones to choose the auditor during the annual general meeting, or at another meeting that takes place during the year.

If you need details about this mandatory appointment before you open a company in Sweden, our team can answer your questions.

How long can an auditor be appointed in Sweden?

It is common to appoint a new auditor each year. In all cases, companies that choose not to do so will be asked to not keep an auditor for more than four years.

Whenever a Swedish auditor is appointed for more than one year, this will be stated in the company’s Articles of Association. If you choose to have an auditor for longer than one year, our experts can specify this in the constitutive documents, when we assist you with company registration in Sweden.

What are the requirements for the auditor?

A person who acts as an auditor in Sweden needs to:

  • be over 18 years of age;
  • not be declared bankrupt;
  • not be prohibited to engage in business;
  • not have a guardian.

What are the applicable exemptions for audit in Sweden?

Small, limited companies are not required to appoint an auditor. However, when a small company that exceeds at least two of the three criteria below in the last two financial years will be required to appoint an auditor:

  • has, on average, more than 3 employees;
  • has a balance sheet of more than SEK 1,5 million (total value);
  • has a net turnover of more than SEK 3 million.

The small company needs to exceed the same two criteria during both financial years.

When a company is the parent company in a group of companies and the group as a whole meets two of the three criteria, then the parent company will have an auditor in Sweden.

Can the tax authorities audit a Swedish company?

Yes. The Tax Agency has the authority to perform audits and the company owners are required to comply with this. The auditor will focus on gathering the needed information about the company’s financial situation. The following can be checked:

  • the accounts and the documents on which the income tax return is based on;
  • the income statements for the employees;
  • the correctness of the VAT reporting;
  • the accuracy of the employer contributions;
  • supporting documentation provided with the company’s registered submissions.

The duration for which the records are checked can vary – from one month to a year, to several years.

The Swedish Tax Agency usually contacts the audited company beforehand and a company that refuses to comply can be forced to do so through a court order. If, as a result of this process, the company’s due tax is changed, a notification will be issued.

If you need to know more about the steps for an audit in Sweden, our team will answer your questions.

Apart from complete company formation services, we also assist our clients with payroll in Sweden.

Contact us for more information on the requirements for performing an audit in Sweden, as well as for complete solutions for company registration in Sweden.