The purpose of the annual accounts audit of commercial companies is to guarantee that the accounting of the company faithfully reflects its economic situation: rights, obligations, assets, liabilities and results of the operation of the business.
This is to protect the interests of both the partners of the company in question (and especially their right to information), as well as third parties that contract or plan to contract with it (eg suppliers, customers, financial entities o Public administrations).
Having said this, the Capital Companies Law (LSC) perfectly establishes which companies have a legal obligation to submit their annual accounts and the management report of their administrators to an auditor; According to the LSC, all companies are required to be audited, except those in which at least two of the following three requirements are present:
- a) The total assets of the company are less than 2,850,000 euros.
- b) The net amount of its annual turnover is less than 5,700,000 euros.
- c) The average number of workers employed during the fiscal year does not exceed 50.
In order for a company that is not required to be audited , it is necessary according to the LSC that it does not meet at least two of the three requirements during two consecutive financial years. The law also exempts companies from their constitution, merger or transformation from this obligation to audit annual accounts during the first year.
At this point, it must be remembered that although a certain company does not have a legal obligation to submit its annual accounts to an audit, it must also audit its accounts if requested in due time and form by the entity’s partners who represent at least five per percent of the share capital.
Said request must be made either to the Mercantile Registrar or to the Legal Secretary of the registered office; The cost of said audit at the request of the partners must be borne by the company itself. However, in order for partners to demand that a certain financial year be audited, no more than three months may have elapsed since its closure.