The Danish Business Authority’s assurance standard for small enterprises
The Danish Business Authority’s assurance standard for small enterprises
Small Danish enterprises have the option to subject their financial statements to an extended review by an auditor in accordance with a special assurance standard. The purpose of this standard is to ensure a reasonable balance between government’s intention to make it easier to do business and to maintain a reasonable control, quality and integrity of the information that flows from the enterprises to business partners, lenders and authorities. This assurance standard has been adopted to create a service provided by the auditor that is better suited for the SMEs in Denmark.
Conditions for using the special assurance standard
Basically, all enterprises in reporting class B can use the set of rules if the enterprise does not, at the balance sheet date and for a period of two consecutive financial years, exceed two of the following three limits:- A balance sheet total of DKK 55 million.
- Net revenue of DKK 111 million.
- An average of 50 full-time employees during the financial year.
It must be resolved by an annual general meeting that the special assurance standard is to be used, and it will apply solely for future financial years. As use of the specialassurance standard is still considered audit in the eyes of the law, it will not be necessary to change the articles of association or the information in the register of companies.
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