Choosing and changing your auditor – how the process works in Finland
In a Finnish limited company, the general meeting appoints the auditor. You can also change auditors mid-year. Here is what to consider.
Choosing an auditor is important, but the procedure is usually straightforward. In a Finnish limited company, the general meeting elects the auditor. A change is also possible if the service no longer meets the company's needs, the service model changes or the business needs specialist experience in its sector, growth or corporate transactions.
A good auditor performs the statutory role independently. For a client, the ease of working together throughout the year matters too.
Who appoints the auditor?
The general meeting elects the auditor of a limited company. The decision is recorded in its minutes, and a change is reported to the Finnish Trade Register where necessary.
In a Finnish private limited company, the term generally continues until further notice unless the articles of association or the appointment decision say otherwise. When a new auditor is chosen, their term generally begins at the end of the meeting that elected them.
If only one individual auditor, rather than an audit firm, is appointed, a deputy auditor must also be elected.
Can the auditor be changed during the year?
Yes. The change need not coincide with a new financial year. The general meeting can appoint another auditor mid-year, provided it makes the decision properly. It is often easiest to plan the transition so responsibilities and timing are clear before the next audit. Agree with the new auditor which financial year or point in time they will begin auditing.
What matters when choosing an auditor?
1. Expertise and experience
Different legal forms, industries and circumstances call for different expertise. The needs of a growing business, group, housing company or a company actively undertaking transactions are not identical. Ask an audit firm who the responsible auditor will be and what experience they have of similar assignments.
2. Capacity and timetable
Audits are often time-sensitive: financial statements, lenders and the general meeting can create a demanding timetable. When asking for a quote, find out what capacity is available and how documents and communication will be handled.
3. A digital way of working
Much of an audit can now be handled digitally. Clear document requests, secure delivery and a predictable schedule reduce the client's administrative burden. JTT's process allows much of the audit to take place remotely, while clients can still speak to the responsible auditor when needed.
4. Communication
An auditor does not replace management or the bookkeeper. Effective communication nevertheless helps when an unusual transaction arises during the year and a question needs addressing before the accounts are finalised. JTT clients have a familiar contact throughout the engagement. Ordinary telephone and email consultation during the financial year is included in the service fee.
5. Price and transparency
The lowest quote is not necessarily the best value. Check what it includes, how additional work is priced and when the fee may change. In the first year, a new auditor must get to know the company and its environment. A useful quote explains its basis. Read what determines the cost of an audit.
When should you consider changing auditors?
A change may be timely if:
- communication is persistently slow or unclear;
- the audit misses the agreed timetable;
- the company's scale or operations have changed substantially;
- new sector or transaction expertise is needed;
- the pricing is unpredictable; or
- the company wants a lighter, more digital process.
Independence must always be maintained. A good working relationship does not mean the auditor makes management decisions: it means the audit and communication work effectively.
How to change auditors
- Ask the prospective auditor for a quote.
- Confirm their willingness to take the appointment.
- Have the general meeting decide on the appointment.
- Record the decision in the minutes.
- File the necessary change with the Finnish Trade Register.
- Agree the timetable and document delivery with the new auditor.
JTT appoints a responsible auditor as your contact for the entire engagement. An initial conversation can cover your situation, the timetable and how to make the change in practice. Explore our audit services or check the statutory audit thresholds.
