Statutory Audit and Auditor's Report in France | Paris 8

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

Quick answer. A statutory audit becomes mandatory once your company exceeds, over two consecutive financial years, two of three thresholds: €5M total balance sheet, €10M net turnover and 50 employees. Below them, appointing a statutory auditor (commissaire aux comptes) stays available on a voluntary basis (fundraising, bank financing, sale). Check your situation below.

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 on the list maintained by the Haute Autorité de l'Audit (H2A), which succeeded the Haut Conseil du Commissariat aux Comptes (H3C) on 1 January 2024. 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 > €5,000,000
• Net turnover > €10,000,000
• 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. See our growth strategy and valuation service.
• 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. See our accounting expertise and statutory auditor pages.
• 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.

A statutory or voluntary audit concerns a broad range of structures in France:

• SAS and SARL that have crossed the legal thresholds over two consecutive financial years;
• SA and SCA, which must appoint an auditor regardless of size;
• High-growth startups seeking to give credibility to their accounts ahead of a fundraising;
• Family-owned SMEs preparing a sale or a transfer;
• Groups subject to consolidation requirements, where a parent controlling subsidiaries can trigger the obligation even below the individual thresholds;
• Associations receiving more than €153,000 in annual public subsidies, or employing more than 1,550 people;
• Regulated professions operating as companies (SELARL, SCP, SEL), depending on their articles of association.

If you are unsure whether your company has crossed the thresholds, we run a quick eligibility check: we look at your total balance sheet, net turnover and average headcount over the last two financial years, and confirm whether the appointment is mandatory, advisable on a voluntary basis, or not yet required. Anticipating the appointment matters, because a statutory auditor is designated for a full six-year term and cannot be the same firm that keeps your books — the two roles are legally incompatible to preserve the auditor's independence.