Audit obligation
Last updated 26/08/2025 – Reading time: 2 min
Audit and annual report are two different things that many people confuse. Mandatory auditing means that an auditor must review and certify your accounts to ensure that the figures are correct.
Sole proprietorships (accounting class A) are not subject to mandatory auditing. Private limited companies (ApS) and public limited companies (A/S) are generally subject to mandatory auditing, but can opt out if they do not exceed two of these three requirements:
- Balance sheet total over DKK 4 million.
- Net sales of over 8 million DKK.
- Average of 12 full-time employees during the financial year
At Accountview, we help many companies that are not subject to audit but still need to prepare annual reports. We prepare over 500 non-auditable annual reports every year.
Extended audit obligation for specific industries
According to the new Bookkeeping Act, the audit obligation is extended to certain industries.
Companies with an annual turnover over DKK 5 million must have a statement either review, extended review or audit, depending on the company’s circumstances.
Risk industries include, among others:
- Road freight transportation
- Moving stores
- Restaurants, pizzerias and grill bars
- Event catering
- Cafes, pubs and discos
- Web portals, data and hosting companies
- Wholesale and retail trade services of cars, vans and minibuses
What statement is required?
Companies in high-risk industries with over 5 million DKK in revenue must have one of the following declarations:
- Declaration of assistance with the preparation of the annual report
- Review statement
- Extended review
- Auditor's statement
Get help with auditing and annual reports
Knowing the audit and annual report requirements is important, especially if your business is in a high-risk industry. If you’re unsure whether your business is subject to audit or need help with your annual report, Accountview can advise and assist you.