Statutory audit requirement and audit thresholds in Finland 2026
When does a Finnish company need an auditor? A guide to the statutory thresholds, the two-financial-year rule and exceptions, with examples.
You do not have to guess whether your company needs an audit. In Finland, the basic thresholds for a statutory audit are set out in the Auditing Act (tilintarkastuslaki).
A small entity may omit the appointment of an auditor if, in both the financial year just ended and the immediately preceding year, no more than one of these three thresholds was exceeded:
- total assets exceed €100,000;
- turnover or equivalent income exceeds €200,000;
- the average number of employees exceeds three.
In practice, a statutory audit is generally required when at least two of these three thresholds are exceeded in both financial years.
Example 1: turnover exceeds the threshold, but the others do not
The company has turnover of €350,000, total assets of €80,000 and an average of two employees.
Only one threshold is exceeded. If the same was true in the preceding year, and no other rule or provision in the articles of association requires an auditor, the company can generally choose not to appoint one.
Example 2: turnover and assets exceed the thresholds
The company has turnover of €450,000, total assets of €180,000 and an average of two employees.
Two thresholds are exceeded. If at least two were also exceeded in the preceding year, the company is generally subject to the statutory audit requirement.
Example 3: rapid growth
Only the turnover threshold was exceeded in the preceding year. Both turnover and assets exceed their thresholds in the year just ended.
Because two thresholds were not exceeded in both years, these basic thresholds alone do not yet create an audit obligation. One year of growth does not automatically make an audit compulsory immediately.
What about a new company?
A newly established entity can generally omit an auditor if it does not yet have two comparable financial years, unless it is already apparent that the conditions for omitting one will not be met. A fast-growing company should check the position before its first financial statements are completed.
The articles of association may require an auditor
Even below the statutory size thresholds, the company's articles of association may require an auditor to be appointed. That requirement must be followed unless the articles are properly amended. It is worth checking in older limited companies in particular: their articles may not reflect today's statutory minimum requirements.
An auditor may also be appointed voluntarily
An audit can be worthwhile even when it is not compulsory, for example where:
- the company has external shareholders;
- a lender or investor values audited financial statements;
- a sale or funding round is being prepared;
- ownership and day-to-day management are separate;
- transactions are significant or complex; or
- the company wants to strengthen its financial management as it grows.
Check special circumstances separately
The Auditing Act and other legislation specify situations where an auditor must be appointed regardless of size. Under the Auditing Act, for example, an auditor must always be appointed by an entity whose principal activity is holding and managing securities and which exercises the substantial influence described in the Act over the management of another entity's business or finances. Different legal forms may also have their own rules.
When is a KHT auditor required?
The Auditing Act sets separate thresholds for larger entities. When they are met, at least one auditor elected by the general meeting must be a KHT authorised auditor, or an audit firm whose responsible auditor is KHT-qualified. For an ordinary SME, the first question is usually whether an audit is required at all.
What if the audit obligation begins?
When a company becomes subject to the audit requirement, arrange the appointment of an auditor well in advance. In a limited company, the general meeting appoints the auditor. The financial statements and management report must be given to the auditor at least one month before the meeting at which the financial statements are approved.
Plan the first audit during the financial year so the auditor can learn about the business and agree how documents will be provided. Read what an auditor examines and how the audit proceeds.
Unsure where your company stands?
In most cases, the last two years' figures and the articles of association are enough to assess the requirement. If the company is near a threshold, growing rapidly or has a group or holding-company structure, check the position before the year-end rush.
JTT can also quote for a future audit. Read what determines the audit fee.
