ApS audit exemption — when can you opt out, and should you?

Small Danish companies can opt out of having their annual report audited. This saves money — but it is not always the wisest choice.

Who qualifies for audit exemption?

The company must stay within at least two of the three following thresholds for two consecutive financial years:

• Balance sheet total: DKK 4 million.
• Net turnover: DKK 8 million.
• An average of 12 full-time employees.

The decision to opt out is made at the general meeting and disclosed in the annual report.

Alternatives

• Full audit
• Extended review
• Review
• Compilation assistance (no assurance)

When should you still use an auditor?

• Your bank or investors require it.
• You have complex transactions or intercompany balances.
• You have had tax issues in the past.

The Danish Tax Agency and the Danish Business Authority select unaudited companies for compliance checks — and fines for errors can cost more than an audit. See our administration and bookkeeping services.

Frequently asked questions

Can newly incorporated companies also opt out?

Yes, if they expect to stay below the thresholds.

Can the decision to opt out be reversed?

Yes, the general meeting can decide to reinstate an audit at any time.

Do these rules apply to UK limited companies?

The UK has its own audit exemption thresholds, which most small limited companies meet.

Get help from Adminbox

Would you like an assessment of your specific situation? Book a free meeting or contact us — we respond within 24 hours.