Many chose to drop an external audit

At the turn of the year, 48,000 limited liability companies had chosen to take advantage of the option to drop an external audit of their annual accounts for 2011. The Brønnøysund Register Centre processed more than 30,000 such cases during the last two months of the year.

Published 25.05.2012

On 16 May, the Register of Business Enterprises made it possible for small limited liability companies to submit notification that they had chosen to drop an external audit. This was a popular simplification measure, and the increase in notifications to the Register of Business Enterprises was very steep in the last two weeks of last year.

In November and December, the proportion of limited liability companies sending notification that they planned to drop an external audit had increased by 170%, Normally, the Register of Business Enterprises receives around 5,000 to 6,0000 notifications a week, but the number doubled during this period. The increase mainly consisted of notifications of decisions to drop an external audit. More than 70% of these notifications were submitted electronically.

The Register of Business Enterprises implemented several measures to handle this. Among other things, it increased the use of overtime and reallocated staff in the whole organisation at the Brønnøysund Register Centre.

The general meeting of small limited liability companies can authorise the board of directors to decide to drop an external audit of the annual accounts.

Companies can choose to drop an external audit of the annual accounts when

  • operating revenues are less than NOK 5 million,
  • the balance sheet total is less than NOK 20 million,
  • and the average number of employees is 10 full-time equivalents or fewer.

 

Saves time and money: the option to drop an external audit is one of several simplification measures that reduce the unnecessary use of resources by businesses. Photo: Harald Harnang, the Brønnøysund Register Centre.

 

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