Taking Control: Internal Control System For The Swiss Trading & Shipping Industry

In a significant change for Swiss business, the recent revisions to the Code of Obligations (CO) impose potentially significant challenges on all Swiss companies. Companies must implement an appropriate internal control system and adequately document it.

The effective date foreseen is 1 January 2008 – the rules will apply to financial years beginning on or after this date. The auditor must express an opinion on whether the internal control system (ICS) exists. For calendar year end companies, this means the report on the December 2008 financial statements. The vast majority of the companies in the Swiss trading and shipping industry are incorporated as local SAs or SARLs, and are therefore affected by these changes.