Audit thresholds in Sweden
Sweden has low audit exemption thresholds compared to other countries, especially outside the Nordic region. This means that fairly “small” limited companies often need to be audited in Sweden. Even though they are not defined as small in Sweden.
What are the audit thresholds in Sweden?
In Sweden limited companies must select an auditor, but small limited companies are exempted from this requirement. A small limited company is defined as a company that is not a bigger company. 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.
- More than three employees on average
- More than SEK 1,5 million as a balance sheet total
- More than SEK 3 million as a net turnover
If the limited company does not exceed two or more of the above criteria, the company is defined as a small company and does not need an auditor.

The development of audit thresholds in Sweden
Before 2010 all limited liability companies in Sweden were required to be audited. But in 2010 Sweden abolished this regulatory requirement and implemented thresholds for when an audit is necessary.
The aim of the abolition of audit obligation for small limited companies was to decrease the administrative and financial burden on these companies.
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Discussion about audit thresholds in Sweden
In 2017 the Swedish National Audit Office (Riksrevisionen) published a report that questioned the abolition of the audit obligation. The report highlighted an increased risk of accounting errors, tax evasion and economic crime. In summary, the report demonstrated that both the audited entities and public good benefitted from an audit.
However, it was decided to not change the audit thresholds in Sweden, but to keep them at the existing level.
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So why are audits important?
An auditor assesses the annual reports of a company with the aim of improving the reliability of the financial reports. The enhancement of reliability is done via the audit report that gives an opinion with a reasonable level of assurance regarding the risk of material misstatement in the financial reports. Reliable financial data is fundamental for the economic system.
Furthermore, as was shown in the report from the Swedish National Audit Office (Riksrevisionen) in 2017, an audit can also minimize accounting errors, tax evasion and economic crime. This is benefical for the audited company as well as society as a whole.
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Revideco is an independent one-stop shop that can help you with your audit needs. We provide a full range of services to both large and small companies and are a strong team of certified auditors, accountants and payroll administrators spread across our offices in Sweden, from north to south.
Together we deliver cost effective and high-quality accounting, audit and consultancy services, which we have done since 1994.


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We have great experience and expertise from supporting local as well as international clients. We cooperate with accountants, chartered accountants, CPAs, CFOs and shared service centres from all over the world. We are accustomed to providing information on Swedish law, Swedish GAAP, and specific Swedish regulations. Our aim is to find the most efficient solution for each and one of our clients.
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