Finnish housing company: statutory auditor or operations inspector?
When must a Finnish housing company appoint an authorised auditor, and when is an operations inspector sufficient? A clear comparison for boards and shareholders.
In brief: a Finnish housing company (asunto-osakeyhtiö) must have an auditor elected by its general meeting if:
- its building or buildings have at least 30 units under shareholders' control;
- the Auditing Act or another law requires one; or
- the shareholder minority specified in law requests an auditor.
An auditor must also be elected if the company's articles of association so require. If there is no auditor, the general meeting must generally elect an operations inspector (toiminnantarkastaja), unless the articles of association provide otherwise.
Statutory auditor vs operations inspector
| Statutory auditor | Operations inspector | |
|---|---|---|
| Qualifications | HT/KHT authorised auditor or audit firm | No auditor authorisation required, but sufficient financial and legal knowledge and experience for the task |
| Nature of the work | An audit, in accordance with good auditing practice, of the financial statements, management report, accounting and administration | Examination of financial management and administration to the extent required by the company's size and activities |
| Report | Auditor's report | Operations inspector's report |
| When required | At least 30 shareholder-controlled units; legal requirement; qualifying minority request; or provision in the articles of association | Where no auditor has been appointed, unless the articles provide otherwise |
| Often appropriate for | Larger companies and smaller ones with, for example, substantial loans or repair projects | Smaller companies with straightforward finances and administration |
How are the 30 units counted?
The threshold counts units under shareholders' control: flats and commercial units whose control is conferred by shares. Spaces under the company's own control, such as saunas, club rooms or stores, are not counted in the same way. If the company itself owns a share-based unit, check that situation separately.
A minority shareholder's right to request an auditor
Even below 30 units, an auditor must be elected if shareholders representing at least one tenth of all shares or one third of shares represented at the general meeting demand one. The request is made at a meeting where the auditor's election is on the agenda.
What about a small housing company?
Fewer than 30 units does not automatically mean that an auditor cannot or should not be appointed. The general meeting can elect one voluntarily, for example because of:
- a major plumbing or facade renovation;
- substantial company borrowing and calculations of loan shares;
- unusually complex finances, such as rental income or several buildings; or
- shareholders' wish for additional independent assurance.
An operations inspection is not automatically sufficient for every small company. The decision should reflect the company's actual circumstances.
What is an operations inspection?
It examines the company's financial management and administration to the extent warranted by its size and activities. An operations inspector need not be an HT or KHT authorised auditor but must have sufficient financial and legal knowledge and experience for the task. The assignment is generally lighter than a statutory audit and is not carried out under auditing standards.
JTT as your housing-company auditor
JTT audits several hundred Finnish housing and real-estate companies each year. Explore our housing-company audit service, read what affects the audit fee, or prepare using our audit document request lists.
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