Statutory audit of annual accounts

Audit of companies
An audit of the annual accounts is required for companies to which the Companies Act applies (corporation, limited liability company, cooperative society, etc.) when during two consecutive financial years they meet two of the three following criteria:

  • Total assets exceed 2,850,000 euros.
  • Net annual turnover exceeds 5,700,000 euros.
  • Average number of employees exceeds 50.

The statutory audit of the annual accounts requires the appointment of the auditors by the Shareholders’ Meeting or General Assembly before the end of the financial year to be audited and the inscription thereof in the register (Company Register, Register of Cooperatives, etc.)

The auditors are appointed for an initial period of not less than three years and not more than nine years from the date of the beginning of the first financial year to be audited, and may be appointed for a maximum period of three years after the end of the initial period.

The statutory audit report must be issued prior to the approval of the annual accounts, and deposited together with the annual accounts.

Foundations and Associations

An annual audit is required for non-profit making foundations and associations which are subject to state regulations (in the autonomous communities these limits may vary) if two of the three following requirements are met:

  • Total assets exceed 2,400,000 euros.
  • The net amount of annual income is over 2,400,000 euros.
  • The average number of employees during the financial year is over 50.

The audit report must be issued prior to the approval of the annual accounts by the Board of Trustees of the Foundation or the Assembly of associates, and deposited together with the annual accounts at the Protectorate or Administrative Body of these entities at the national or regional level.

Consolidated annual accounts

An audit of the consolidated annual accounts is obligatory for those groups that meet two of the three following requirements during two consecutive financial years:

  • Total assets in excess of 11,400,000 euros.
  • Net annual turnover in excess of 22,800,000 euros.
  • Average number of employees over 250.

The audit of consolidated annual accounts requires the appointment of the auditors by the Board or General Assembly of the group’s parent company before the end of the financial year to be audited and the inscription thereof in the Company register.

The audit report on the consolidated annual accounts must be issued prior to the approval of the consolidated annual accounts and must be filed together with the annual accounts.

Other mandatory audits of the annual accounts or financial statements

Companies in which any of the following circumstances concur, among others:

  • That are routinely engaged in financial intermediation (registered with the Bank of Spain)
  • That have as their corporate purpose the provision of private insurance
  • Whose securities are listed on any of the official stock exchanges
  • That issue bonds in public offerings
  • That in the financial year have received subsidies of more than 600,000 euros from the public sector
  • That have provided services to the Public Sector in excess of 600,000 euros and which represent more than 50% of their turnover.