Statutory auditor

Appointing a statutory auditor in Paris is a legal obligation for many companies, and the role matters: it is what makes financial information credible and transparent. The commissaire aux comptes (CAC), often working alongside chartered accountants (experts-comptables), certifies a company's annual accounts and confirms that they comply with the applicable accounting standards. This page sets out when a CAC must be appointed, what the engagement actually involves, and why that expertise matters.

When must a French company appoint a statutory auditor?

1. Legal obligations for commercial companies
Commercial companies must appoint a statutory auditor once two of the following three thresholds are exceeded for two consecutive financial years:

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• Total balance sheet above 4 millions d'euros,

• Revenue excluding tax above 8 millions d'euros,

• An average of 50 permanent employees over the financial year.

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These criteria mean that once a company reaches a certain size, its accounts go through a rigorous independent check, which strengthens its financial credibility.

2. Entities with specific obligations
Beyond commercial companies, some entities must appoint a statutory auditor regardless of any revenue or balance sheet threshold. That includes large companies, listed companies, and businesses operating in regulated sectors. These organisations face strict requirements on the certification of their accounts, so that shareholders, investors and regulators get full transparency.


The statutory auditor's work in Paris goes well beyond simply checking figures. The main responsibilities are set out below.

1. Checking that the accounts comply
One of the CAC's core duties is to examine the company's annual accounts and confirm they comply with the applicable accounting standards. That review covers the full set of financial documents: balance sheet, profit and loss account and the notes to the accounts.

2. Certifying the accounts
After a rigorous review, the statutory auditor issues an opinion on whether the annual accounts are compliant, fairly stated and reliable. This certification confirms that the financial statements give a true picture of the company's financial position. Shareholders scrutinise it closely at the annual general meeting.

3. Reviewing financial transactions
The CAC also verifies that the company's financial operations and transactions are properly conducted. That covers the handling of funds, compliance with tax obligations and whether transactions follow the applicable legal rules. This control reduces the risk of financial irregularities damaging the company's reputation.

4. Assessing internal controls
The CAC also assesses how effective the company's internal control systems are. Sound internal control is essential to keep financial information accurate and to prevent fraud. By reviewing these mechanisms, the statutory auditor identifies weaknesses and recommends improvements to make internal processes more reliable.


The engagement follows a structured, methodical process in several stages.

1. Reviewing the accounts and financial documents
The CAC starts with an in-depth analysis of the annual accounts, the financial statements and the other accounting records. The aim of this stage is to identify the critical points that need closer attention.

2. Testing internal controls
The CAC then assesses whether the internal controls in place are effective enough to keep financial information reliable. This confirms whether internal procedures are robust enough to prevent errors and fraud.

3. Issuing the certification report
Finally, the statutory auditor writes a certification report setting out the conclusions on the compliance of the accounts and of the company's financial operations. The report is then presented to shareholders at the annual general meeting, where it forms the basis for approving the accounts.

 

The statutory auditor can issue different types of opinion when certifying a company's annual accounts.

1. Certification without reservation
Certification without reservation means the CAC has examined the accounts thoroughly and is satisfied that they are compliant and fairly stated. The accounts are confirmed as giving a true picture of the company's financial position and results.

2. Certification with reservation
In some cases the CAC issues a certification with reservation. This means specific items in the accounts need clarification or correction, without the accounts as a whole being called into question. The reservations are set out in the report so readers know which points require attention.

3. Refusal to certify
If the CAC identifies serious irregularities or significant failings, they can refuse to certify the accounts. A refusal to certify can have major consequences for the company, particularly for its credibility with shareholders, investors and regulators.

Conclusion
The statutory auditor's role in Paris is fundamental to making a company's financial information reliable and transparent. As an independent expert, the CAC provides an essential guarantee of compliance with accounting and legal standards, which strengthens stakeholders' confidence in the company's financial position. Working with an experienced statutory auditor, properly integrated within the compagnie nationale des commissaires aux comptes and the regional compagnies des commissaires of Paris, is essential for any company that wants to secure its future and stay compliant.
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