NEO CAC: Statutory audit obligations

Which entities are subject to statutory audit?

Whether or not an entity is subject to statutory audit depends on its legal status, as well as the thresholds for income and the number of employees recorded at the financial year-end.


CERTIFICATION OF ANNUAL ACCOUNTS
Principal cases where statutory auditing is legally required


  Joint stock company (SA)
  Limited partnership with shares (SCA)
  European company
Obligation to appoint at least one statutory auditor – no threshold conditions apply
  One-person limited company (EURL)
  Limited liability company (SARL)
  Limited partnership without shares (SCS)
  General partnership (SNC)
  European company
Obligation to appoint at least one statutory auditor when two of the following three thresholds are exceeded:
Total balance sheet: 1 550 K€
Income: 3 100 K€
N° employees: 50
  Simplified joint stock company (SAS)Obligation to appoint at least one statutory auditor:

  When the SAS controls or is controlled by one or several companies as set out in art. L. 233-16 C. com. (exclusive or joint control) (C. com. art. L. 227-9-1) – no threshold conditions apply
– or –
  When two of the following three thresholds are exceeded at the financial year-end (C. com. art. R. 227-1):
Total balance sheet: 1 000 K€
Income (excluding VAT): 2 000 K€
  Charities and foundations that receive gifts from donors for which a tax receipt has been issuedObligation to appoint at least one statutory auditor when the annual donations received exceed 153 000 euros
  Not-for-profit organisations that receive public subsidiesObligation to appoint at least one statutory auditor when annual public subsidies received exceed 153 000 euros
  Economic interest grouping (GIE)
European economic interest grouping (GEIE)
Obligation to appoint at least one statutory auditor for:
  Economic interest groupings issuing bonds
  Economic interest groupings employing at least 100 employees at the financial year-end

When thresholds are exceeded, a company is required to appoint a statutory auditor for the following financial year. A company is relieved of this requirement if it no longer meets the thresholds at the year-end of the two accounting periods that precede the expiry of the audit engagement.

The auditor must remain in office for the entire duration of the audit engagement (six accounting periods). This applies even if shortly after the auditor has been nominated, the company is in a position where it is no longer legally required to appoint a statutory auditor.

Other cases where statutory auditing is required and no threshold conditions apply


There are many other occasions when statutory auditing is required and no threshold conditions apply. Please contact us for a specific response depending on your case.

Other legal statutory audit obligations


Certain operations are subject to statutory auditing, particularly:
  Payment of interim dividends
  Contribution in-kind during the creation of a company or capital increase,
  Mergers,
  Change of business structure…

Statutory auditing for a change of business structure is, notably, required in the following cases:

Change of business structure
Of:Into:
SARLSA, SCA, SAS, SNC, SCS, civil company
SASSA, SCA
SARL, SCS, civil company if the SAS already appoints a statutory auditor
SASAS, SCA, SARL, SCS, civil company, European company
SCASA, SAS, SARL, SCS, civil company
SNC, SCS, civil companySA, SAS, SCA if the company has not appointed a statutory auditor