Blog - Limited vs Ordinary Audit: A Guide to the Different Types of Audits in Switzerland
Limited vs Ordinary Audit: A Guide to the Different Types of Audits in Switzerland
The audit is a critical aspect of financial responsibility and transparency in Switzerland. In this blog post, we take a close look at the two most common types of audits used in Switzerland - the limited audit and the ordinary audit - and analyze their differences.
Limited Audit
The limited audit, comparable to a review in other countries, is a restricted and less intensive form of audit. It is primarily used by smaller companies and organizations for which a full ordinary audit is not necessarily required.
In such an engagement, the auditor examines the financial statement of a company using analytical audit procedures and discussions with the management team. However, no detailed tests of a company's financial controls are conducted during a limited audit. If there is justified cause for doubt, however, the auditor can carry out further checks.
Ordinary Audit
The ordinary audit is a more extensive and detailed audit process. This engagement involves a full and thorough examination of the financial statement and the internal controls of a company. The auditor conducts detailed tests and investigations to ensure that the company's financial statement is truthful and fair in all material respects.
The ordinary audit is mandatory for larger companies and organizations, or those listed on the stock exchange.
Main Differences
The depth and level of detail of the examination are the main differences between a limited and an ordinary audit. While a limited audit is more superficial and based on analytical audit procedures and discussions, an ordinary audit is a deep examination that requires detailed tests and investigations.
The engagement of the auditor also varies between these two types of audits. For an ordinary audit, the engagement of the auditor is more intensive, as more time and resources are required to fully review the financial statement and the internal controls of a company.
Regardless of the type of audit your company chooses, it is important that you use the services of a qualified and experienced auditor. At blueAUDIT GmbH, we offer both limited and ordinary audits to help companies ensure their financial responsibility and transparency. Contact us for more information.
