Mission of the auditor: what does it cover?

Updated March 2026 - The mission of the auditor is not limited to "verifying accounts". It is part of a precise legal and normative framework, with an opinion on the accounts, specific due diligence and strong independence requirements.

The mission of the auditor (CAC) is a mandatory legal audit for certain companies. The CAC examines the annual accounts and, where applicable, the consolidated accounts, in order to certify that they are regular, fair and give a true and fair image of the assets, financial situation and results of the entity.

In summary: the auditor controls the regularity and sincerity of the accounts, carries out specific verifications, triggers alerts in the event of difficulties and intervenes on particular operations. Its opinion is formulated in a report addressed to partners and shareholders.

This scope is defined by the Commercial Code and the Professional Practice Standards (NEP) published by the National Company of Auditors (CNCC). Since the PACTE law of 2019, the obligation thresholds have been raised, but the nature of the mission remains unchanged in its fundamental requirements.

Certification constitutes the raison d'être of the auditor. It is based on NEP 700, which governs the formulation of the opinion in the audit report.

The key phases of the audit#

The CAC carries out its mission according to a methodology structured in several stages:

• Getting to know the entity: analysis of the sector of activity, the economic model, the organization and the internal control environment
• Risk assessment: identification of sensitive areas likely to contain significant anomalies, whether due to fraud or errors
• Definition of the audit approach: selection of appropriate procedures (consistency tests, surveys, external confirmations, physical observations)
• Collection of evidence: gathering of sufficient and appropriate evidence to support the opinion
• Review of audit assertions: verification of the existence, évaluation, completeness, rights and obligations, and adequate présentation of each accounting item
• Formalization of the opinion: drafting of the report with a conclusion which can be without reservation, with reservation, with refusal to certify, or with abstention

The four types of opinion#

At the end of its mission, the CAC formulates one of the following four opinions:

• Unreserved certification: the accounts are regular and sincere, without significant anomaly
• Certification with reservation: anomalies exist but are not serious enough to invalidate all accounts
• Refusal to certify: the anomalies are so significant that the accounts do not give a true picture
• Abstention to certify: the CAC was unable to obtain the necessary éléments to form its opinion (limitation of the scope of its work)

In 2026, the vast majority of missions result in unreserved certification. Reserves generally concern matters of valuation of intangible assets, risk provisioning or business continuity.

Beyond the certification itself, the auditor carries out verifications required by law. These procedures are not part of the opinion on the accounts but are the subject of a separate report.

Verifications on regulated agreements#

The CAC examines the agreements concluded between the company and its managers, partners holding more than 10% of the voting rights, or other related parties. It verifies that these agreements have been correctly authorized by the board of directors or the management board, then submitted to the vote of the general meeting.

Verifications on governance and rémunération#

The auditor controls:

• the sincerity of the information given on the rémunération of executive corporate officers
• compliance of the management report with the annual accounts
• the consistency of information relating to the environmental and social situation (for the companies concerned)
• the regularity of capital operations (increases, reductions, share buybacks)

Report on internal control#

For several years, the CAC has included in its report an assessment of internal control and risk management implemented by management. This section does not constitute a certification of internal control, but an observation on the systems identified during the audit.

The alert procedure is a unique preventive mechanism in Europe. It allows the auditor to intervene when he becomes aware of facts or circumstances likely to call into question the continued operation of the company.

The procedure#

1. Written request for explanations: the CAC sends a letter to the managers to ask them for clarification on the facts identified
2. Response from managers: they have one month to respond
3. Second request if necessary: in the absence of a satisfactory response, the CAC may request the holding of an extraordinary general meeting
4. Special report: if the situation warrants it, the CAC draws up a special report presented to the assembly

This procedure is not a sanction. It aims to protect the company by drawing the attention of partners to risks before they become irreversible. In practice, most situations are resolved upon the first request for explanations, thanks to dialogue between the CAC and management.

The auditor is appointed by the general meeting of shareholders for a term of six financial years (three years for small companies affected by the reduced thresholds). His mandate is renewable.

The rules of independence#

Independence is the cornerstone of the mission. The CAC must respect strict rules:

• prohibition on holding financial interests in the audited company
• prohibition to exercise incompatible management or advisory functions
• obligation to rotate every six years (with a waiting period of three years before being able to be re-appointed)
• annual déclaration of independence from the CNCC and the H2A (High Authority for the Transparency of Public Life for public interest entities)

These rules ensure that the CAC's opinion is objective and free from any conflict of interest. They are regularly reinforced by the European legislator, notably since the 2014 European regulation on legal audit.

To find out more about the legal framework, consult obligation of auditor and the PACTE law and auditors.

It is essential to understand the limits of the mission to avoid any misunderstanding between management and the auditor.

The mission of the CAC does not replace:

• the responsibility of managers in drawing up the accounts: it is the management which prepares the accounts, not the CAC
• operational internal control on a daily basis: the CAC observes and assesses the systems, but does not put them in place
• company strategy: the CAC does not participate in strategic decisions, it notes the accounting consequences
• permanent financial management: the audit is a periodic mission, not ongoing management support
• detection of all fraud: the CAC implements procedures to identify significant anomalies, but an audit does not guarantee the discovery of all irregularities, especially if they are concealed in a sophisticated manner

Hayot Expertise Advice: the mission of the CAC must be understood as a framework of trust. To derive value, you must carefully prepare the accounts, the closing, the documentation and the dialogue with the teams. A well-prepared audit runs more smoothly and generates fewer management points.

Experience shows that companies that anticipate the mission of their auditor benefit from a smoother audit and a more constructive relationship. Here are the best practices that we recommend to our clients:

• Prepare a complete closing file: balances, journals, justifications for regularization accounts, reconciliation tables
• Document accounting estimates: impairment tests, provisions for risks, evaluation of intangible assets
• Anticipate CAC questions: identify sensitive points upstream (turnover ahead of schedule, accrued liabilities, off-balance sheet commitments)
• Organize a shared calendar: plan exchanges with the CAC from the month preceding the closing to avoid last minute emergencies
• Maintain a register of conventions: list all conventions likely to be regulated to facilitate specific verifications

We can help you make the closing process, documentation and sensitive points of the audit more reliable.

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In 2026, the mission of the auditor remains a key financial confidence system. It covers the certification of accounts, specific verifications, a preventive alert procedure and governance controls. Its scope is broad but precise, and it benefits from being anticipated on the management and finance side.