Purpose: The purpose with this study is to see what the small limited companiesprefer of the alternatives to the Statutory audit that has been created inthe others EU-countries. These alternatives can be current in Sweden tomaintain the credibility.Method: Quantitative procedure.Conclusions: By the result to judge from the small limited companies prefer the alternativeto the Statutory audit where they do not need to hire further helpto complete the audit. That is probably why the bookkeeping agency hasbeen chosen to give a guarantee for quality endorsement..

Sweden has had Statutory audit, which also includes a management audit, for all companies since 1988. A legislative proposal now suggests that the Statutory audit shall be abolished for all small and medium sized companies starting on July 1, 2010. The aim for this master?s thesis is therefore to study how the service of auditing will be affected by the legislative proposal. To answer the research question the authors have taken on a qualitative approach and fifteen interviews with representatives for different Swedish auditing firms have been completed.

BackgroundA cost that lately has been discussed related to audit is the higher cost for auditing of small stock company. The question is if this cost is higher than the total utility of Statutory audit and should it in that case be statutory. SRF says that the condition for small stock companies development is an abolishment of Statutory audit. FAR consider that auditing is important for development and continuation.PurposeThe purpose of this paper is to investigate whether there are any winners or losers among auditing firms and accounting firms in Sweden if the Statutory audit for small stock companies abolish.MethodThe paper is both a qualitative and a quantitative study that is based on primary data made from an interview and a questionnaire investigation. ConclusionOur conclusion is that the big Winner is the accounting trade.

Final assignment for Bachelor Degree in Business Administration,Mid Sweden University in ÖstersundSpring term 2008Title: Abolishment of Statutory audit ? a qualitative research on banks attitude when credit rating small businessesAuthor: Rima Harouki, Carina HoffmannSupervisor: Anna-Maria JanssonBackground & problem: In Sweden the Statutory audit has been mandatory for every corporation since 1983. With the membership in European Union it became possible to allow exception from Statutory audit for small businesses, according to the fourth commission of EG. Today, in the European Union, there are few countries that still have Statutory audit for smaller businesses, Sweden is one of them. There are discussions about whether Sweden should follow the trend of abolishment and an analysis management by the justice of the Supreme Court Bo Svensson was recently presented, which ended in the conclusion that Statutory audit ought to be abolished.

Background & Problem: The Statutory audit was initiated in the beginning of 1983 with the argument that it had a preventative affect against economic crimes. It is discussed whether the Statutory audit should be abolished considering it brings major costs for small limited companies, also there are discussions however easing the regulation for these companies. What effect would it impose for the preventative work against economic crimes if the Statutory audit is abolished?Purpose: The purpose with this study is to learn how an abolishment of the Statutory audit among so called micro businesses will affect authorities? preventive work against the economic crimes.Demarcate: The study is demarcated to comprise only authorities that work with preventing economic crimes with help of the Statutory audit and that will be affected of an possible abolishment, such as the Swedish Tax Office (Skatteverket) and the Swedish National Economic Crimes Bureau (Ekobrottsmynigheten).Methodology: The research is based on a qualitative approach with personal interviews with two representatives from each authority. The gathering of data has been done by researching literature and databases.Conclusions: The result shows that the Statutory audit is significant for the authorities and their preventive work.

Background: Currently Sweden has the possibility to like other EU countries raise the limits of Statutory audit, but have chosen significantly lower limits. The reform was adopted in 2010 and only applies to smaller companies and there is great pressure for the limits to rise in future. This would enable Swedish companies to compete on equal terms in Europe. Aim: The aim of our study is to investigate the impact of the removal of the Statutory audit for smaller companies from audit and accounting bureaus perspective and also the possible impact if the limits were to rise. Furthermore we want to explore how the supplies of other financial services have developed as a result of this.

Purpose: To investigate whether or not the credit granters believe the quality in audits will deteriorate after the abolishment of Statutory audit and, if that is the case, how the abolishment will strike the purpose and goal of accounting.Approach: To answer our purpose we carried out a literature study to later implement interviews with four granters of credits specialised in business accounts.Findings: The process of credit granting will not change after the abolishment of Statutory audit for companies still using audit reports. Though, for other companies the process will change dramatically since the lean time of the process will increase. Higher demands will be put on these companies since the reliability in the economic information will decrease when it is no longer being reviewed in the same sense. Though, the credit granters believe that some form of substitute for audit will be demanded in order for the companies to be granted credits from the bank..

Today all private corporations are obligated by Statutory audit. The government of Sweden appointed an investigation to conclude if the audit should be statutory or not. The investigator presented on the third of April 2008 a report (SOU 2008:32) that suggests abolishment of the Statutory audit for approximately 97 % of all private corporations in Sweden. This will result in certain effects on the banks credit rating because of the fact that the banks trust the audited accounts to have been audited by an independent audit.The most important in the banks credit rating are: personal judgement, business concept, business plan and repayment ability. The banks also use the private corporations audited accounts in its credit rating.We conducted a case study by interviewing four bank officials in different banks in Skövde and Tibro.

The purpose of the set of regulations as regards to accounting and auditing within the Union, is primarily to ensure a high quality of the large public companies financial reporting and hence protect the capital market investors. As the set of regulations also applies to the small companies, these are burdened by administrative costs that are disproportionate. To increase the competitiveness of the European companies, the European council has stated that it is essential to reduce the companies? administrative costs. The main principle is that all companies are under an obligation to Statutory audit, however Member States may make audit exemptions for small companies.

It is mandatory for the countries in the European Union with company audit, still the countries can separately choose to exclude smaller companies from this rule. Most companies in the EU use this exception, Sweden is one of the few countries that does not. The Swedish government has recently announced that an inquiry will be made to examine the effect of an abolishment of the Statutory audit for smaller companies.This study examines in what extent car selling companies use revised material when they give costumers credit and the consequences of an abolishment of the Statutory audit for these companies. The conclusion of the study is that car selling companies feel secure knowing that their costumers have been audited. Most companies interviewed, buy credit information from external sources.The persons interviewed have a hard time knowing the outcome of the abolishment of the Statutory auditing.

In September 2008, a proposition to limit auditors? liability for Statutory audit was launched by a Swedish Government official report. Auditors? legal liability in this respect has been joint and unlimited for more than 60 years in Sweden. By using a qualitative literature study method, this paper aims at discovering how the proposed change in legal liability affects the legitimacy of auditors in Sweden.

Background: The Statutory audit in Sweden was implemented in 1983 and the purpose was to improve the owners ability to control and to mitigate economic fraud. The present debate is concentrated about the high costs of audit in small companies. The major concern is whether the Statutory audit should be mandatory for the smallest companies. Purpose: The purpose of this bachelor thesis is to explain the value of auditing in small companies defined as 10/24-companies by identify and analyze possible factors that affects the attitudes towards auditing and reflects the value of a Statutory audit. Research method: Our study is deductive and based on a quantitative research method which includes both a survey and the companies annual reports.

Background: Sweden has, since 1983, had a Statutory audit for all joint-stock companies. However, according to EG?s fourth corporation directive, member countries can decide on their own if this applies for small joint-stock companies. An investigation was launched in the fall of 2006 to form an opinion on the importance of the audit reporting by law and what an abolishment of this rule would mean for small joint-stock companies. Critics are claiming that the cost of audit for small companies is exceeding the cause in these micro companies.Audit is regulated by Swedish translation (RS) of International Standards on Auditing (ISA) and is to be applied in all companies comprised by the Statutory audit.

Background: With the removal of audit requirement for companies in Sweden from the first of november 2010, a lot of companies has chosen not to keep the audit requirement. So far 57 percent of the small companies has chosen to keep the audit, in spite of that they don´t need to which led us to the problem statement: Which are the factors that affect a small limited company to choose to keep the audit, in spite that now there is a possibility to choose not to use audit anymore?Purpose: The purpose of the essay is to examine why small limited companies choose to keep the audit, in spite that now there is a possibility to choose not to use audit?Method: This research founds itself in a qualitative study with a deductive research approach. We have been studying secondary data in books and articles and preformed 29 phone interviews with small ltd company owners in Sweden. The selection consisted of 14 companies with credit debts and 15 companies without credit debts.

In April 2008 an official report, SOU (2008:32), was presented. In that report it was suggestedthat the Statutory audit for approximately 96 % of the Swedish companies was to be abolished.The report suggests that the new regulations should apply to all limited companies thatare below two of three limits that have been suggested: a) a balance-sheet total of 41,5 millionSEK; b) a net turnover of 83 million SEK or; c) less than 50 employees. The regulations aresuggested to come into force July 1, 2010. According to the Swedish laws that regulate thelimited companies, Aktiebolagslagen 10:11, should all limited companies regardless of sizehave an chartered accountant or otherwise approved. The purpose of the audit is to create atrust towards the figures that the company shows and also to act as an assurance towards thirdparties (Collis, 2003; Strenger et al, 2008).