FAQ –
Frequently asked questions
Questions about finance, auditing in Sweden, accounting, CPA, payroll services and administration, taxes and VAT ? We have the answers!
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Common questions about auditors, auditing, and audit firms in Sweden
An organization’s financial position needs to be taken care of by professionals. Auditors in Sweden are professionals who examines and evaluates a company’s financial records, information, records, and operations to ensure accuracy, compliance with regulations, and adherence to generally accepted auditing standards.
Even though there may be different types of auditors in Sweden, the primary goal of an auditor is to provide an independent and objective assessment of the financial information presented by the entity being audited.
Financial Statement Audit:
Auditors in Sweden review and verify financial statements to ensure they accurately represent the financial position of the organization.
Compliance Audit:
Swedish Auditors examine whether the organization complies with applicable laws, regulations, and industry standards.
Internal Controls Assessment:
Evaluating the effectiveness of internal controls within the organization to ensure the reliability of financial reporting and safeguarding of assets.
Risk Assessment:
Identifying and assessing financial and operational risks that may impact the organization.
Audit Planning:
Developing an audit plan outlining the scope, objectives, and procedures for the audit.
Communication:
Communicating audit findings, recommendations, and concerns to management, stakeholders, or regulatory bodies.
Auditors in Sweden can work as external auditors or internal auditors, for accounting firms, government agencies, or within organizations. They play a crucial role in maintaining the integrity of financial information, promoting transparency, and ensuring accountability in business and financial operations.
External auditors in Sweden are often hired by organizations to provide an independent assessment, while internal auditors are employed by the organization to assess and improve internal processes and controls.
As an registered auditing firm in Sweden, Revideco offer a range of auditor services:
Financial Statement Audit in Sweden:
Conducting an independent examination of an organization’s financial statements to ensure accuracy and compliance with accounting standards.
Compliance Audit in Sweden:
Verifying whether an organization adheres to applicable laws, regulations, and industry standards.
Special Purpose Audit in Sweden:
Conducting audits tailored to specific purposes, such as forensic audits, due diligence for mergers and acquisitions, or agreed-upon procedures engagements.
Review Engagements in Sweden:
Providing limited assurance on an organization’s financial statements through a review process, which is less extensive than a full audit.
Tax Compliance Audits in Sweden:
Assessing an organization’s compliance with tax laws and regulations, identifying potential risks and opportunities for improvement.
Consulting and Advisory Services:
Offering advisory services related to financial management, strategic planning, and process improvements based on insights gained during the audit process.
Auditing for international companies in Sweden involves a structured process to ensure compliance with both Swedish and international accounting and auditing standards. Here’s an overview of how selecting swedish auditors as well as a typical audit proceduer works for international companies in Sweden:
Selection of Auditors in Sweden:
International companies operating in Sweden typically engage the services of audit firms with expertise in both Swedish accounting regulations and international standards. The selected auditors should have the necessary qualifications and experience to navigate the complexities of cross-border business operations.
Understanding Regulatory Frameworks:
Auditors in Sweden need to understand and navigate the regulatory frameworks of both Sweden and the home country of the international company. This includes familiarity with Swedish Generally Accepted Accounting Principles (GAAP), International Financial Reporting Standards (IFRS), and any other relevant local or international accounting standards.
Scope Definition:
The audit scope is defined based on the nature and size of the international company’s operations in Sweden.
Risk Assessment:
Auditors in Sweden conduct a thorough risk assessment to identify potential risks associated with the international company’s operations. This includes assessing the risks related to currency exchange, legal and regulatory compliance, and any other risk management factors that may impact the financial statements.
Audit Planning:
A detailed audit plan is developed, outlining the audit approach, key audit procedures, and timelines. The plan considers the unique aspects of the international company’s business, such as multicurrency transactions, intercompany transactions, and transfer pricing issues.
Testing Procedures:
Auditors in Sweden perform testing procedures to verify the accuracy and completeness of financial transactions and account balances. This may include testing internal controls, analytical procedures, and sample testing of significant balances.
Communication with Stakeholders:
Throughout the audit process, auditors in Sweden communicate with relevant stakeholders, including management and those charged with governance. This ensures transparency and provides an opportunity for management to address any concerns raised during the audit.
Reporting:
Upon completion of the audit, the auditors in Sweden issues an audit report that includes an opinion on the fairness of the financial statements. The report is based on the auditor’s assessment of whether the financial statements comply with applicable accounting standards and present a true and fair view of the company’s financial position.
Coordination with International Auditors:
In the case of multinational companies with audits conducted in multiple jurisdictions, auditors in different countries have to coordinate their efforts to ensure a cohesive and efficient audit process. This coordination helps in addressing any cross-border complexities and ensuring consistency in reporting.
It’s crucial for international companies operating in Sweden to work closely with audit firms experienced in international audit. This collaboration helps ensure accurate financial reporting, compliance with local and international standards, and effective risk management.
Forensic auditors are professionals who specialize in conducting forensic audits, which are detailed examinations of financial records, transactions, and documentation to uncover and investigate financial irregularities, fraud, or other unlawful activities.
No. Sweden does not have an entity equivalent to the U.S. Securities and Exchange Commission (SEC).
In Sweden, financial markets and securities regulation are overseen by the Swedish Financial Supervisory Authority (Finansinspektionen or FI). The FI is an independent government agency that regulates and supervises financial institutions, including banks, insurance companies, and securities firms.
It is the shareholders that elect the auditor. This is done at the annual general meeting or at a extraordinary general meeting.
Sweden has low audit exemption thresholds compared to other countries, especially outside the Nordic region. If a limited company, for the last two financial years, has exceeded two of the following criteria, the company is defined as a bigger company and must appoint an auditor. 1) More than three employees on average, 2) More than SEK 1,5 million as a balance sheet total, 3) More than SEK 3 million as a net turnover
Common questions about accounting and CPA in Sweden
A licensed CPA firm, in Swedish Auktoriserad Revisionsbyrå, are the sole providers of official audit services in Sweden. But can, if the CPA firm is a combined agency also provide accounting and taxation-services Combined agencies employ not only CPAs but also accountants as well as tax advisors.
In terms of tax services, a CPA firms can work as a tax advisor and help navigating the complex maze of tax laws and regulations. They offer invaluable assistance in tax preparation and ensuring compliance with the latest tax codes. Their expertise is particularly beneficial for large companies facing multifaceted tax challenges.
Auditing and other assurance services are the main services of CPAs. They conduct thorough audits to assess the financial health and integrity of an organization. This process involves an in-depth examination of financial records, internal controls, and compliance with legal and regulatory standards. By providing an objective evaluation, CPAs help organizations enhance their financial transparency and credibility.
In the context of Swedish financial and legal frameworks, understanding the distinction between a CPA (Chartered Public Accountant) or in Swedish Auktoriserad revisor and an authorized accountant, in Swedish Auktoriserad redovisningskonsult) is crucial for businesses and individuals seeking accounting services. While both are recognized professions in the field of accountancy, there are significant differences in terms of the scope of services they can offer.
The CPA designation is directly connected to being able to provide audit and other assurance services.
A authorized accountant is specialized in providing accounting services, tax administration, payroll, year end procedures and prepare annual financial statements. An authorized accountant or authorized accounting consultant cannot provide official audit services i.e cannot sign and submit an audit report.
The distinction between what CPAs (Chartered Public Accountants) and accountants can do is significant, especially within the Swedish corporate landscape. While accounting is a field open to many, the specific competencies and legal authorizations of CPAs set them apart, particularly in the realm of auditing. In Sweden, the law mandates that all limited liability companies, with certain exceptions, must appoint an auditor. This auditor must be a CPA or in Swedish Auktoriserad revisor.
One of the primary capabilities exclusive to CPAs is conducting statutory audits. These are required by law for limited companies, with some exceptions. An auditor assesses the company’s financial statements and gives an opinion regarding the risk of material misstatement in the financial statements with a reasonable level of assurance. The audit process involves a thorough examination of accounting records, financial transactions, and internal controls. The ability to perform these audits is not just a function of their advanced training but also a testament to their deep understanding of complex financial regulations and standards.
Accounting firms that employ CPAs (Chartered Public Accountants) are in Swedish referred to as “Kombi-byråer” or in English “Combined agencies”. They are uniquely positioned to offer a comprehensive suite of services, far surpassing the capabilities of standard accounting practices. The legal status, extensive experience, and stringent requirements that CPAs must meet, enable these firms to also provide audit and assurance services. The primary services offered by CPA-equipped firms is statutory auditing. This is a critical service for larger corporations, as CPAs are uniquely qualified to conduct these in-depth evaluations of a company’s financial statements. These audits are not just about compliance; they provide valuable insights into a company’s financial health, identifying areas of risk and opportunities for improvement.
Financial and business advisory services
Another significant area where CPA firms excel is in financial and business advisory services. CPAs bring a wealth of knowledge in financial management, business strategy, and risk assessment. They can offer corporate finance advisory on mergers and acquisitions, financial restructuring, and investment strategies. Their expertise is particularly beneficial for companies undergoing significant transitions or looking to expand their operations.
Furthermore, CPA firms often provide specialized services like forensic accounting, which is crucial in investigating financial discrepancies and fraud. They also offer services in areas like sustainability work, which is becoming increasingly important as businesses seek to understand and report on their corporate social responsibility.
More than traditional accounting
CPA firms also play a pivotal role in financial reporting and compliance. They help businesses prepare accurate financial statements in accordance with accounting standards and regulatory requirements. This is crucial for companies that need to present their financial position to stakeholders, investors, and regulatory bodies.
In summary, accounting firms with CPAs offer a diverse range of services that extend well beyond traditional accounting. Their ability to provide statutory auditing, tax compliance services, and specialized accounting services makes them invaluable partners for businesses, especially those with complex financial structures or those operating in highly regulated industries. Their ongoing investment in their staff reflects a commitment to high-quality service and expertise.
The journey to becoming a CPA, or in Swedish Auktoriserad revisor, is rigorous, underscoring the high standards set for these professionals. It encompasses a comprehensive educational background, successful completion of a demanding examination, and accumulation of significant professional audit experience. Additionally, CPAs must undergo thorough personal vetting to ensure they adhere to the highest ethical and professional standards. This stringent process ensures that only individuals with the utmost dedication, skill, and integrity attain the CPA designation.
The Swedish equivalent to the CPA exam is called the Auditor exam and is known for its high standards and difficulty, reflecting the critical role CPAs play in business and finance. Before taking the exam, the candidate must undergo both theoretical education and practical training. The theoretical education must include a Bachelor’s degree and the studies must have included certain specific subject areas. The practical training consists of a three-year training program at an auditing firm.
The exam is case based and designed to test not only the candidate’s knowledge but also their ability to apply this knowledge in real-world scenarios.
In summary, the CPA exam in Sweden is a multifaceted evaluation that thoroughly tests a candidate’s accounting and auditing knowledge, understanding of business law and taxation, financial management skills, and commitment to ethical standards. Passing this exam is a testament to the candidate’s expertise and readiness to take on the significant responsibilities of a CPA.
The role of a Certified Public Accountant, CPA, is to provide assurance services to the financial system. Many CPAs also provide tax services and accounting services.
Common questions about payroll services and payroll administration
Navigating the complexities of payroll in Sweden can be a daunting task. With numerous labour laws, tax regulations, and social security programs to consider, ensuring compliance and accurate compensation for employees is of utmost importance.
Read all about Swedish payroll in this comprehensive guide >
Navigating the complexities of payroll services in Sweden can be daunting for both local and international businesses. Ensuring compliance with the Swedish Tax Agency, understanding employment contracts, and managing tax deductions are just a few of the challenges that businesses face. But fear not, for there are comprehensive payroll solutions that can ease the burden and provide a seamless experience for your business.
In this article, we explore the significance of payroll solutions in Sweden, discuss the challenges and advantages associated with Swedish payroll management.
Adhering to Swedish payroll regulations is essential for successful compliance. Outsourcing payroll services with a knowledgeable provider can help reduce errors, ensure continuity, and minimize risk in payroll management.
Common questions about tax and VAT in Sweden
Non-Swedish companies that have permanent establishment in Sweden need to file Swedish tax returns. However, some companies that do not have permanent establishment may also need to file tax returns.
If a non-Swedish company has permanent establishment in Sweden, the company needs to file Swedish tax returns. In some cases companies that do not have permanent establishment may also need to file tax returns.
Starting January 1, 2025, the turnover threshold for VAT exemption in Sweden will increase from SEK 80,000 to SEK 120,000.
You must register with the Swedish Tax Agency and get a VAT no if you conduct economic activities in Sweden and sell goods or services that are liable to VAT.
Yes it is! Revideco is a VAT representative in Sweden and we assist businesses with the VAT registration process, VAT accounting as well as VAT filings. We provide our services to both large and small businesses from all over the world.
