Lempelse af revisionspligten og de kvalitetsmæssige konsekvenser heraf

Martin Nellemann & Patrick Bentsen

Student thesis: Master thesis


The term “quality” is subject to massive debate as far as Danish financial reporting is concerned. For the past decade or more, auditing requirements have been undergoing many changes. Especially the requirements of the smallest companies belonging to reporting class B. From being subject to total audit, these companies may now opt out on using an auditor and do the bookkeeping and financial reporting without supervision by any specialists. The Danish constellation purposed for entrepreneurs – the so-called entrepreneurial companies “iværksætterselskaber” – was approved in 2014. However, after significant problems with compulsory dissolutions and bankruptcies, and arrears growing and growing regarding VAT, duties and taxes, it has been decided to eliminate the possibility of establishing new entrepreneurial companies, and the ones existing will therefore be forced to convert into private limited companies as a minimum.
This will be the result of massive debates between politicians, the Ministry of Industry, Business and Financial Affairs, the Danish tax authorities, interest groups (FSR Danske Revisorer, Dansk Industri et al.) and of course Danish companies affected by either a more austere legislation or if the auditing requirements loosens even further.
By interviewing representatives of the smallest companies possible, which may opt out on using an auditor, and candidates within small and medium-sized Danish companies, the audit profile of which is significant, we find that we have established a plausible solution in terms of how we can improve the overall quality of the financial reporting.
Focus should be on ensuring the payment of taxes, VAT, etc. and preventing fraud without making the administrative burden of companies too heavy. Consequently, we find the implementation of an auditor obligation to be an appropriate solution. We also believe that this obligation should contain mandatory supervision by the auditor signing the accounts and include at least a statement of assistance. Due to the low risk of corruption and the decent ethical morale displayed by Danish auditors, we believe that this should significantly improve the overall quality of both the financial statements and tax returns as opposed to situations where small business owners undertake all these things themselves.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2019
Number of pages117