When an auditor is required, he or she must examine the finances of the branch and the managing director’s administration.
Auditor or not?
If a branch has met at least two of the following criteria in the last two financial years, it must appoint an auditor:
- more than 3 employees (as an average),
- a balance sheet total of more than SEK 1,5 million , or
- a net turnover of more than SEK 3 million .
Branches engaged in financial business in accordance with Article 12, second paragraph, of the Foreign Branch Offices Act (1992:160) must always have an auditor. In these cases, it might also be required that the auditor is authorized.
Unlike other business structures, there are no minimum size requirements that indicate when an authorized auditor is required.
Approved or authorized
The auditor of the branch must be approved or authorized. The Swedish Supervisory Board of Public Accountants decides who is an authorized or approved auditor or a registered public accounting firm.
If a registered public accounting firm is appointed as auditor, the name of the principally responsible auditor shall be registered with Bolagsverket. The accounting firm must be a Swedish company carrying out auditing and must meet the requirements of the Accountants Act. The company must not, for example, be declared bankrupt or in liquidation.
If the branch wants to register a foreign auditor (resident within the European Economic Area) he or she must meet certain requirements. The auditor must have
- a foreign diploma allowing him or her to carry out auditing as defined by law in a state within the EEA and
- passed a special aptitude test with the Swedish Supervisory Board of Public Accountants.
You must file documents certifying that the auditor fulfills these requirements before we can register the matter.
One’s own resignation as auditor
If you are a registered auditor in a branch, you may resign your own responsibility. The auditor of a branch is not appointed for a certain term of office. This means that the resigning auditor does not need to file a statement for the observations that he or she has made during his or her period as auditor for the branch. One’s own resignation as auditor is free of charge.
Use the form Resignation (on one's own responsibility), 890 e , to resign as an auditor.