New provisions for auditors in the trade register and the register of associations

Content

Registration of auditors in the trade register and the register of associations

As of 1 January 2007 some changes of the Trade Register Act and the Act on Economic Associations came into force. The changes of the provisions imply that the enterprises which are obliged to appoint a qualified auditor are now also obliged to notify the auditor for registration.

Legal entity as a partner

Partnerships with at least one legal entity as a partner must appoint an authorized or approved auditor. The auditor must be notified for registration with Bolagsverket.

Large enterprises or associations

In partnerships with only natural persons registered as partners an auditor is required if the enterprise is of a certain size. The auditor should be authorized or approved with the special examination of professional competence as "godkänd revisor" and must be notified for registration with Bolagsverket.

Sole traders, non-profit associations carrying on business activities and religious communities of a certain size must be notified for registration in the trade register. They are also obliged to appoint a qualified auditor and notify him/her for registration with Bolagsverket. All economic associations of a certain size are obliged to appoint a qualified auditor and notify him/her for registration.

Bolagsverket may decide that an approved auditor (godkänd revisor) be appointed instead of an authorized or approved with the special examination of professional competence as "godkänd revisor" (exemption according to section 15 of the Audit Act (Revisionslagen) or Article 8, section 5 the Act on Economic Associations). The County Administrative Board may appoint auditors in certain cases (Section 25 of the Audit Act and Article 8, section 6 of the Act on Economic Associations).

Criteria for an enterprise to be regarded ‘large’

An enterprise fulfilling more than one of the following three conditions is regarded ‘large’:

• The average number of employees of the enterprise must during each of the two most recent financial years have amounted to more than 50.
• The reported balance-sheet total of the enterprise must for each of the two most recent financial years have amounted to more than 25 million Swedish kronor.
• The reported net turnover of the enterprise must for each of the two most recent financial years have amounted to more than 50 million Swedish kronor.

The principle is sometimes referred to as the 50/25/50 – principle. The principle applies to financial years starting after 31 December 2006. Bokföringsnämnden (The Swedish Accounting Standards Board) shall issue directions for estimating the criteria. The criteria are inter alia stipulated in Article 6, section 1 of the Book-keeping Act (bokföringslagen).

16 January 2007