Mandatory audits of annual accounts.


A mandatory audit of annual accounts is required for companies subject to the Spanish Companies Act (public limited liability, private limited liability, cooperatives, etc.) when during two consecutive years they meet two of the following three requirements:



  • Total assets exceed €2,850,000.

  • Annual net revenues exceed €5,700.000.

  • The average number of employees exceeds 50.


A mandatory audit of annual accounts requires the appointment of auditors before the end of the year to be audited and notification be provided to the Mercantile Registry.


Auditors are contracted for an initial term that cannot be less than three years or more than nine years starting on the date on which the first year to be audited commences and may be contracted for further periods with a maximum of three years once the initial period has ended.


The audit report for a mandatory audit of annual accounts must be issued before the approval of the annual accounts and be filed with the Mercantile Registry together with the annual accounts.


Mandatory audit of consolidated annual accounts.


A mandatory audit of consolidated annual accounts is required for companies that meet two of the following three requirements during two consecutive years:



  • Total assets exceed €11,400,000.

  • Net revenues exceed €22,800,000.

  • The average number of employees exceeds 250.


A mandatory audit of consolidated annual accounts requires the appointment of auditors before the end of the year to be audited and notification be provided to the Mercantile Registry.


The audit report for a mandatory audit of consolidated annual accounts must be issued before the approval of the consolidated annual accounts and be filed with the Mercantile Registry together with the annual accounts.


Other mandatory audits of annual accounts for financial statements


Companies that meet any of the following requirements:



  • Habitually dedicated to financial intermediary services (registered with the Bank of Spain).

  • Corporate purpose includes private insurance activities.

  • Shares listed on any of the Official Trading Exchanges.

  • Bonds issued as part of a public offering.

  • Subsidies exceeding €600,000 received from public entities during the financial year.

  • Services rendered to public entities exceed €600,000 and this represents more than 50% of revenues.