When a company becomes subject to a statutory independent audit

The statutory audit is one of the questions owners of growing businesses ask most often — “as the company grows, when will they want audited accounts?” The answer is set precisely in the audit and accountancy legislation, and the thresholds were raised by the amendments in force from 6 July 2024.

The criteria for a statutory audit (current for 2026)

The annual financial statements of small enterprises are subject to a statutory independent audit if, as at 31 December of the current reporting period, they exceed at least two of the following three measures for two consecutive years:

Who always needs an audit, regardless of size

• Joint-stock companies and partnerships limited by shares (unless they carried on no activity during the year).
• Medium-sized and large enterprises under the Accountancy Act categorisation.
• Public-interest entities — listed companies, banks, insurers and pension funds.
• Parent undertakings preparing consolidated annual financial statements.
• Public-benefit non-profit organisations — where they exceed certain income or asset thresholds.

What this means in practice

The audit report must be produced by a registered auditor entered in the register of the public oversight commission, and it is published together with the annual financial statements in the Commercial Register. The audit is not a formality — the registered auditor is answerable for the correctness of the opinion given.

Conclusion

Tracking the three thresholds is an essential annual discipline in a growing business — discovering at the last moment that you have crossed one leaves far too little time to select and engage an auditor before the statutory deadline.

The two-consecutive-years rule

Your status changes — entering or leaving the audit requirement — when the thresholds are exceeded, or cease to be exceeded, for two consecutive years. So a one-off jump in turnover in a strong year does not automatically trigger an audit — but the converse holds too: do not assume one weak year releases you immediately. Tracking must therefore be continuous, not a one-off check.

Frequently asked questions