Doing Business In Sweden - Audit Requirements

Under the Companies Act, the annual reports of every limited liability company must be audited. The auditor, elected at the annual general meeting of shareholders, must be a certified or approved Swedish auditor. Shareholders holding 10% of the total voting power may appoint a minority auditor.

At least one of the auditors must be a public accountant if the company is deemed a "large company" by virtue of meeting any of the following criteria:

- For the past two years, the company's net assets exceeded 1,000 base units (see below) at year-end or the average number of employees exceeded 200.
- The company's shares or debentures are quoted on the Stockholm Stock Exchange.

The "base unit" is a concept often used in Sweden because contributions, benefits or prices are adjusted periodically for inflation. The base unit effective 1 January 1995 was SEK 35,700.