Many Swiss SMEs opt out of the limited statutory examination. While opting out is legally permitted, it is not necessarily the best choice in every situation. A voluntary audit can provide additional assurance and strengthen confidence in a company’s financial figures, particularly when the business is growing, seeking external financing, planning for succession or has several shareholders.
This article looks at the situations in which a voluntary audit can make sense, even when there is no legal requirement to have one.
What does opting out mean?
Companies that would normally be subject to a limited statutory examination can dispense with an auditor entirely if certain conditions are met. This is known as opting out. It is possible if the company employs no more than ten full-time equivalents on annual average and all shareholders or partners agree.
Since 1 January 2025, a company can only opt out for future financial years. The opting-out declaration must be submitted to the commercial register before the start of the financial year concerned.
Audits have become the exception for smaller companies
Opting out has fundamentally changed the Swiss audit market. According to an analysis of commercial register data by Daniel Bättig, published in Expert Focus 2025/12, only around 13% of Swiss corporations still had an auditor at the end of September 2025. Since opting out was introduced in 2008, the number of audit engagements has fallen from around 171,000 to just under 71,000.
This trend is particularly pronounced among limited liability companies (GmbHs): only around 3% had an auditor. Among public limited companies (AGs), the proportion was significantly higher at around 26%. The same trend can be seen among newly established companies: In the first nine months of 2025, 99% of newly founded GmbHs and 93% of newly established companies limited by shares chose not to appoint an auditor.
For smaller companies, an audit has therefore become an exception. However, the fact that relatively few companies have one does not mean that opting out is necessarily the best choice for every business.
An audit builds confidence in the financial figures
Annual financial statements represent more than a statutory requirement. They provide an important basis for decisions by owners, the board of directors, management and external stakeholders. Reliable financial figures are particularly important when seeking financing, planning a succession, valuing a company or participating in tenders.
A voluntary audit strengthens confidence in these figures. It demonstrates that the annual financial statements have been independently reviewed and that the company is willing to subject its finances to external scrutiny. This can be particularly beneficial for companies that rely on banks, investors, new investors or strategic partners.
There is also empirical evidence supporting this confidence factor. In a study commissioned by EXPERTsuisse and conducted by the Swiss Research Institute of Small Business and Entrepreneurship at the University of St. Gallen (KMU-HSG), Heiko Bergmann and Michael Schreiner used anonymised data from the Swiss Creditreform Association to analyse the relationship between opting out, creditworthiness and the risk of bankruptcy (Expert Focus 2020/9, p. 586). The results show a statistically significant correlation between opting out and a higher likelihood of poor creditworthiness. While this does not establish a definitive causal relationship, the study suggests that companies with an auditor tend to be more financially sound.
An independent perspective can identify risks at an early stage
Small and medium-sized companies often have lean organisational and financial processes. While this is efficient, it can also mean that weaknesses go undetected for a long time – for example in liquidity planning, controlling, accounts receivable management or the documentation of important business transactions.
In their article “Konkurse vermeiden – Beiträge der Revisionsstelle” [Preventing Bankruptcy – The Auditor’s Role] published in Expert Focus 2023/2, Beatrice Meyer and Adriano Guanci show that auditors can play a preventive role where the causes of bankruptcy are within a company’s control. Their analysis of interviews with bankruptcy offices, bank representatives and auditors suggest that companies without an auditor are more likely to have less professional or inadequate accounting structures. Companies with an auditor also tend to take action sooner when they encounter financial difficulties.
An auditor cannot prevent a company from going bankrupt. Responsibility for financial stability remains with the company and its governing bodies. However, an audit can help to identify and address financing gaps, inadequate controlling, weaknesses in accounts receivable management or fraud risks at an earlier stage. If there are doubts about the company’s ability to continue as a going concern, it must examine its budgets, liquidity planning and future financial prospects in greater detail.
This is one of the key benefits of a voluntary audit: it does not replace management’s responsibility, but it provides regular opportunities for an independent third party to scrutinise the company’s figures and risks. This allows critical developments to be identified earlier and appropriate measures to be taken in good time.
A voluntary audit can help professionalise a company
Many companies only introduce an audit once they are legally required to do so. From a business perspective, however, there can be good reasons to start earlier. As a company grows, it generally becomes more complex, with more employees, larger projects, international business relationships, higher inventory levels, more accounts receivable or new financing arrangements.
A voluntary audit can help the company manage this growing complexity in a structured way. As part of the audit, the annual financial statements and key closing items are regularly subject to independent review. This can highlight issues such as unclear accruals, questions around valuations or gaps in documentation. A recurring audit process can therefore help reduce potential sources of error and gradually improve financial processes.
This is particularly relevant for the board of directors. The board is responsible for the overall management of the company, the organisation of its accounting function and financial oversight. An auditor cannot assume this responsibility, but can provide the board with additional assurance and an independent professional assessment.
The value of an audit for financing, succession and companies with multiple shareholders
A voluntary audit can be particularly valuable when the annual financial statements are used by parties outside the company. Banks, investors, potential buyers or those involved in a succession process need reliable financial information. An independent audit provides additional transparency and makes it easier for them to assess the company.
The benefits are particularly clear in the context of a business succession or sale. If a company can provide audited annual financial statements covering several years, this can strengthen confidence and reduce uncertainty during due diligence. Without an external audit, buyers or investors often have to spend additional time validating and preparing the financial information themselves.
A voluntary audit can also be beneficial for companies with multiple shareholders or partners. If not all of them are involved in the company’s day-to-day operations, an independent audit provides everyone with a common, reliable basis for assessing the company and helps build trust between the parties.
Summary: an audit is not an end in itself
A voluntary audit is not necessary for every company. For very small, straightforward companies that are fully owner-managed, opting out may well be the right solution. However, the decision should not be based on cost alone.
What matters more is the importance of reliable, independently audited financial information to the company. The more a company grows, the more external stakeholders rely on dependable financial information, and the more complex its financial affairs become, the greater the potential value of a voluntary audit. It strengthens confidence in the financial figures, supports the early identification of risks and can help prepare the company for financing, succession or further growth.
For SMEs, therefore, the question is not simply whether they are permitted to opt out of an audit. It is equally important to consider how an independent audit could benefit the company in its next stage of development.
Author
Severin Zünti
Audit
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Baar
Editor’s note: The author also used AI-powered tools when writing this article.
Sources
Daniel Bättig, «Zahlen und Fakten zum Schweizer Revisionsmarkt – Ein Überblick», Expert Focus 2025/12, S. 502–507;
Heiko Bergmann / Michael Schreiner, «Auswirkungen eines Opting-out», Expert Focus 2020/9, S. 586;
Beatrice Meyer / Adriano Guanci, «Konkurse vermeiden – Beiträge der Revisionsstelle», Expert Focus 2023/2, S. 10–14.
