Statutory audits

A statutory audit of financial statements is an audit of a company’s or institution’s financial statements that is required by law. As an entrepreneur in the Netherlands, you are subject to an mandatory audit if you meet two of the three criteria below for two consecutive years:

• a turnover of more than 12 million euro
• a balance sheet total of more than 6 million euro
• an average of 50 or more employees

A statutory audit in the Netherlands must be carried out by an audit firm that holds a licence from the AFM (Netherlands Authority for the Financial Markets). CROP chartered accountants holds a licence to conduct statutory audits of non-PIE organisations. A PIE is an organisation of public interest. These are organisations whose size or function in society affects the interests of larger groups, such as insurers and credit institutions.