companydata.dkAudit requirement (revisionspligt)
The audit requirement (revisionspligt) is the duty to have the annual financial statements audited by an approved auditor. Small companies can under certain conditions opt out of audit if they stay below the statutory size limits.
The starting point is that companies must be audited. Small companies can however opt out if, in two consecutive fiscal years, they stay below two of three limits for balance sheet total, net revenue, and number of employees. The opt-out must be decided at the general meeting and stated in the annual report.
Types of auditor's reports
Financial statements can carry different levels of auditor involvement: full audit, extended review, review, or assistance — or none at all. The stronger the report, the greater the assurance. An auditor's report with qualifications or emphases (e.g. going concern) is an important signal always worth reading.
Related terms
Annual report (årsrapport)
An annual report (årsrapport) is a company's complete official financial reporting for a fiscal year — typically income statement, balance sheet, notes, and management review — filed with the Danish Business Authority and made public.
Reporting class (regnskabsklasse)
The reporting class (A, B, C, or D) is the Danish Financial Statements Act's grouping of companies by size and type. The class determines the content requirements for the annual report — the higher the class, the more disclosure.