Statutory Audit and Auditor's Report in France — Hayot Expertise, Paris 8

Statutory audit (commissariat aux comptes) is one of the most regulated professional services in French law. When a company is legally required to appoint a statutory auditor (commissaire aux comptes, CAC), or chooses to do so voluntarily to build trust with partners, lenders or investors, the quality of the audit and the auditor's independence are critical. At Hayot Expertise in Paris 8, we have been supporting SMEs, SAS, SARL, associations and groups for over 10 years in their statutory audit missions — whether legally mandated or freely chosen. Our approach combines technical rigour, deep sector knowledge and a pedagogical mindset so that the audit mission becomes a genuine trust-building tool rather than a bureaucratic formality.

The commissaire aux comptes is a regulated independent professional registered with the High Council of Statutory Auditors (H3C). Their main mission is to certify the regularity, sincerity and true and fair view of a company's annual accounts. They express their opinion in a general report addressed to shareholders or members. Beyond certification, the CAC has the power to trigger an alert procedure if there is a risk to going-concern, and must report criminal offences to the public prosecutor.

The statutory auditor is appointed for a 6-year term (non-renewable in the same role for mandatory mandates). They must be fully independent of the audited entity: they cannot hold an employment or service contract with the company, and cannot be the entity's chartered accountant (expert-comptable). This separation guarantees objectivity.

Legal Thresholds for Mandatory Appointment in 2026

Following the 2019 PACTE Act, a SAS (simplified joint-stock company) must appoint a CAC if it exceeds, at the close of two consecutive financial years, at least 2 of the following 3 thresholds:

• ▸Total balance sheet > €4,000,000
• ▸Net turnover > €8,000,000
• ▸Average number of employees > 50

SARL (limited liability companies) and SNC are subject to the same thresholds. SA and SCA are always required to appoint a CAC regardless of size. Consolidated groups are subject to specific rules that may require a CAC even below individual thresholds. Associations receiving more than €153,000 in public subsidies or with more than 1,550 employees are also covered.

Statutory Certification of Annual Accounts

This is the core mission. Following the audit work (entity understanding, internal control evaluation, substantive testing, third-party confirmations), the CAC issues one of three opinions in the general report:

• ▸Unqualified opinion: the accounts give a true and fair view;
• ▸Qualified opinion: anomalies are identified but do not undermine the overall picture;
• ▸Adverse opinion or disclaimer: the accounts contain too many material misstatements or the CAC could not obtain sufficient evidence.

The CAC also issues a special report on regulated related-party transactions, and various attestations for corporate events (capital increases, dividend distributions, etc.).

Voluntary Audit for Startups and SMEs

Even below the legal thresholds, many companies voluntarily appoint a CAC. This is particularly appropriate when:

• ▸Raising capital: VC funds and business angels often require certified accounts before investing.
• ▸Significant bank financing: banks are more willing to lend when accounts are certified.
• ▸Public procurement: some tenders require the submission of certified accounts.
• ▸Preparing a sale: certification reassures the buyer and reduces warranty risks.
• ▸Improving governance: an independent external review strengthens the reliability of financial reporting.

Audit and Certification of Non-Profit Organisations

Non-profit associations (loi 1901) receiving more than €153,000 in annual public subsidies are required to appoint a CAC and submit their annual accounts for certification. Our firm understands the specific accounting features of non-profit entities (designated funds, restricted grants, valued volunteering) and regularly supports Parisian cultural, sports and social associations.

1. ▸

   Engagement letter and entity understanding — We formalise the mission, identify sector-specific risks and accounting risk areas. This includes management interviews and a preliminary analytical review.

2. ▸

   Internal control assessment — We analyse internal control procedures (segregation of duties, payment approvals, bank reconciliations) to determine their effectiveness and calibrate the extent of our substantive tests.

3. ▸

   Account testing — We conduct sample-based tests on significant balance sheet and income statement items, third-party confirmations (customers, suppliers, banks, lawyers), and analytical procedures comparing current year data with prior years and budgets.

4. ▸

   Communication with management — Before issuing our opinion, we present any identified anomalies to management and gather their explanations. This step is essential to avoid misunderstandings and allow corrections.

5. ▸

   Report issuance — We draft the general report, the special report on related-party transactions, and any additional reports (capital increase, dividend distribution, etc.), for presentation at the annual general meeting.

6. ▸

   Ongoing monitoring and alerts — Throughout the year, we monitor the entity's financial situation. In the event of a going-concern risk, we trigger the statutory alert procedure.

• ▸Confusing the chartered accountant (expert-comptable) with the statutory auditor (CAC): the former prepares the accounts, the latter certifies them. They must be independent of each other.
• ▸Missing the appointment deadline: a CAC must be designated in the articles of association or by general meeting resolution. Any failure exposes directors to penalties.
• ▸Thinking the CAC is only for large companies: voluntary audit is increasingly common among SMEs and startups, particularly to secure relationships with investors and financial partners.
• ▸Forgetting non-profits: many associations are unaware of their obligation to appoint a CAC, exposing them to sanctions from public funders.

TechFlow SAS (Parisian IT services firm, 45 employees, €9.5M turnover) had just crossed the legal thresholds and was preparing a €5M Series A fundraising. The investor required certified accounts for the two most recent financial years. Hayot Expertise was appointed as CAC and conducted the audit for years N-1 and N. The unqualified audit report reassured the fund, validated the valuation assumptions and enabled the deal to close within 3 months. During the mission, we also identified €120,000 of revenue incorrectly deferred to the following year, which was corrected before the year-end close.

Fees are determined based on the complexity of accounts, sector, number of entities and risks identified during the planning phase.

Our firm combines chartered accounting and statutory audit expertise under one roof, with fully independent professionals for each mission. This dual expertise allows us to deeply understand our clients' operational and financial context while maintaining the rigour and objectivity essential to certification. We stand out for our responsiveness (dedicated single point of contact), our deep knowledge of tech, professional services, retail and real estate sectors, and our ability to support strategic transactions (fundraising, disposal, restructuring) that require a fast and reliable audit.

My SAS has 35 employees and €6M turnover. Do I need to appoint a statutory auditor? No, you are below the thresholds on two criteria (turnover < €8M, employees < 50). However, if your total balance sheet exceeds €4M and you have crossed two of the three thresholds for two consecutive years, the obligation applies. A case-by-case check is recommended.

What is the difference between a statutory auditor and a contractual auditor? The CAC is a regulated professional whose mission is governed by law and professional standards (NEP). A contractual auditor conducts an audit freely defined between the parties (due diligence, acquisition audit). Both can be performed by the same firm, provided they do not act on the same entity.

Can a statutory auditor be dismissed before the end of their mandate? Yes, but only for just cause, by court order on application to the president of the commercial court. Dismissal without just cause exposes the company to damages.

Can our CAC also be our chartered accountant? No. The missions are incompatible: the CAC must be independent of the audited entity. They cannot prepare the accounts they are required to certify.

Is the CAC report public? The general report is presented at the annual general meeting and filed with the commercial court registry along with the annual accounts. It is therefore accessible to third parties.

How long does a statutory audit mission take? Interim work (internal control assessment, mid-year tests) takes place during the year. Final work (year-end close) occurs in the 1–3 months following the financial year end. The report is issued before the general meeting for account approval.

Book a meeting with our team to discuss your statutory audit or CAC appointment project.

See also: Accountant missions and obligations 2026 | Commissaire aux comptes Paris 8