Which companies are required to have their accounts audited in accordance with Spanish corporate law?

The importance of auditing and compliance in Spain

In the business world, transparency and accuracy of financial information are essential to ensure the confidence of investors, customers and other stakeholders.

In Spain, the Capital Companies Act (Royal Legislative Decree 1/2010 of July 2, 2010) establishes the auditing obligations for companies. Below, we will analyze which companies are obliged to audit their accounts in accordance with this regulation and why it is crucial to have a specialized legal service to comply with these obligations effectively.

Which companies must audit their accounts?

Under the Spanish Companies Act, not all companies are required to have their accounts audited. This obligation falls mainly on companies that meet certain specific requirements, designed to ensure that larger and more relevant companies in the market are subjected to more rigorous scrutiny.

The companies that must be audited are those that, during two consecutive fiscal years, meet at least two of the following conditions:

1. That the total asset items exceed 2,850,000 euros.
2. The net turnover must be more than 5,700,000 euros.
3. The average number of workers is greater than 50.

In addition to the general criteria, there are specific situations that require companies to be audited, regardless of their size:

1. Listed companies: All companies whose securities are admitted to trading on a regulated market in any Member State of the European Union.
2. Public interest entities: These include, among others, credit institutions, insurance companies and companies whose net turnover and average workforce exceed certain limits.

It is important to note that there are some exceptions and particularities in the application of these criteria:

1. Groups of companies: When a company is part of a group, the aforementioned limits shall apply to the sum of the amounts of all the companies in the group.
2. Newly created companies: They are not obliged to be audited in their first fiscal year, even if they meet the requirements.

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Companies are classified according to their size into micro, small and medium-sized enterprises (SMEs), and large companies, in accordance with accounting regulations. 

The audit of accounts is not only a legal requirement, but also offers multiple benefits for companies.

An external audit provides independent validation of the company’s financial information, which increases the confidence of investors, customers and any interested third party.

Auditors can identify areas for improvement in internal processes and risk control, contributing to more efficient and effective management.

Complying with audit obligations avoids penalties and legal repercussions, thus protecting reputation and business continuity.

Failure to comply with the obligation to audit accounts can have serious consequences for companies. These include significant fines, the impossibility of accessing sources of financing and the deterioration of image and confidence in the eyes of investors and clients.

At ILP Abogados we can advise you on the choice of the auditor, manage its appointment and its registration in the Commercial Registry. Our extensive experience and specialization in corporate law allow us to offer a comprehensive and personalized service, tailored to the specific needs of each company.

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