Switzerland

The financial reporting framework in Switzerland is established under the Swiss Code of Obligations (Swiss CO), which sets out the general requirements for the preparation of financial statements for all entities. The framework provides for differential reporting based on entity size and public interest status. Entities may prepare financial statements in accordance with Swiss CO or elect to apply recognized international or national standards such as International Financial Reporting Standards (IFRS), IFRS for Small and Medium-sized Entities (IFRS for SMEs), United States Generally Accepted Accounting Principles (US GAAP), or Swiss Generally Accepted Accounting Principles (Swiss GAAP FER). Public interest entities (PIEs), defined as listed companies and regulated financial institutions, are subject to additional requirements, including the preparation of consolidated financial statements in accordance with IFRS or US GAAP for companies listed on major stock exchanges, or Swiss GAAP FER for those listed on domestic markets. Swiss GAAP FER is established by the Swiss GAAP FER Foundation, an independent private sector standard-setting body.

In addition to the Swiss CO, PIEs are subject to financial reporting and supervisory requirements issued by the Swiss Financial Market Supervisory Authority (FINMA), which establishes sector-specific regulations for banks, insurance companies, and other regulated entities.

Statutory audit requirements are governed by the Swiss Code of Obligations and the Federal Act on the Licensing and Oversight of Auditors of 2005. Mandatory audits are required for PIEs and for entities exceeding specified size thresholds based on total assets, revenue, and number of employees. Entities below these thresholds are subject to a statutory limited examination, which provides moderate assurance and is conducted in accordance with national review standards.

The Federal Audit Oversight Authority (FAOA), established under the Federal Act on the Licensing and Oversight of Auditors, is responsible for the oversight of the audit profession and for setting auditing standards applicable to PIEs. For audits of financial statements prepared under Swiss CO or Swiss GAAP FER, auditing standards are issued by the Swiss Expert Association for Audit, Tax and Fiduciary (EXPERTsuisse), which develops national standards that are based on International Standards on Auditing (ISA) with limited modifications to address jurisdiction-specific requirements.

For listed companies preparing financial statements in accordance with IFRS, audits are conducted in accordance with ISA as issued by the International Auditing and Assurance Standards Board. Companies applying US GAAP are subject to audit requirements established by the United States Public Company Accounting Oversight Board.

Only statutory auditors are regulated at the state level in Switzerland. The audit profession is governed by the Federal Act on the Licensing and Oversight of Auditors of 2005, which establishes the legal framework for the approval, registration, supervision, and discipline of auditors and audit firms. Public oversight is exercised by the Federal Audit Oversight Authority (FAOA), an independent authority responsible for maintaining the public register of licensed auditors and audit firms and ensuring compliance with applicable professional and regulatory requirements.

Entry into the statutory audit profession is defined in law and implemented through a combination of academic, practical, and professional requirements. Individuals seeking to qualify as Licensed Audit Experts are required to obtain a relevant university degree, complete a minimum of three years of practical experience, and pass a final professional examination. A separate qualification exists for Licensed Auditors performing statutory limited examinations, which requires at least one year of practical experience. All auditors must be registered with the FAOA to practice. Initial professional development and continuing professional development requirements are established under the Act and implemented in cooperation with universities and professional bodies.

The FAOA is responsible for approving and registering auditors and audit firms, establishing oversight arrangements for the audit profession, conducting quality assurance reviews, and administering investigation and disciplinary procedures. It also sets auditing requirements for public interest entity audits and cooperates with international audit oversight bodies.

In addition to statutory auditors, other segments of the accountancy profession, including accountants, tax advisors, fiduciary specialists, and experts in accounting and controlling, are not regulated at the state level. These professionals may voluntarily join professional accountancy organizations and are subject to the requirements established by those organizations.

The Swiss Expert Association for Audit, Tax and Fiduciary (EXPERTsuisse) is the principal professional accountancy organization in the jurisdiction and operates on a voluntary membership basis. EXPERTsuisse plays a significant role in supporting the development of the profession, including administering professional education and examinations for auditors, establishing and enforcing continuing professional development requirements for members, issuing auditing standards for non-public interest entity engagements, setting ethical requirements, and operating an investigation and disciplinary system for its members.

Independent public oversight of the audit profession in Switzerland is established under the Federal Act on the Licensing and Oversight of Auditors of 2005, which provides the legal framework for the supervision of statutory auditors and audit firms. The Act designates the Federal Audit Oversight Authority (FAOA) as the competent authority responsible for audit oversight in the jurisdiction.

The FAOA is a public institution of the Swiss Confederation with its own legal identity and operates independently in carrying out its mandate. It is responsible for approving and registering auditors and audit firms, maintaining a public register of licensed professionals, and overseeing audit firms that provide services to public interest entities.

Under the Act, the FAOA conducts inspections of audit firms, including regular quality assurance reviews, and is responsible for ensuring compliance with applicable auditing standards and legal requirements. It also administers investigation and disciplinary procedures for statutory auditors and audit firms and cooperates with domestic and international regulatory authorities to support effective audit oversight.

The FAOA is a member of the International Forum of Independent Audit Regulators, supporting international cooperation and the exchange of information among audit oversight authorities.

The Swiss Expert Association for Audit, Tax and Fiduciary (EXPERTsuisse)

EXPERTsuisse was established in 1925 and is the principal professional accountancy organization in Switzerland. It operates on a voluntary membership basis and represents professionals and firms in audit, tax, fiduciary, accounting, and advisory services. EXPERTsuisse trains, certifies, supports, and represents Swiss certified experts and promotes high-quality professional services through education, continuing professional development, technical resources, and professional guidance.

EXPERTsuisse plays a significant role in supporting the development and regulation of the profession. Its activities include administering professional education and examinations, supporting continuing professional development, issuing professional guidance and auditing standards for non-public interest entity engagements, setting ethical requirements for members, and maintaining an investigation and disciplinary system for its members.

EXPERTsuisse’s membership includes auditors, accountants, tax consultants, fiduciary experts, bookkeepers, students, and firms. In addition to being an International Federation of Accountants member, EXPERTsuisse is a member of Accountancy Europe.

The quality assurance (QA) review system in Switzerland is established under the Federal Act on the Licensing and Oversight of Auditors of 2005 and is administered by the Federal Audit Oversight Authority (FAOA). The FAOA is responsible for the licensing, registration, and oversight of statutory auditors and audit firms, including the implementation of a risk-based inspection system covering audits of public interest entities and other firms under its supervision.

The QA review system is operational and applies to statutory audits, with inspections conducted on a periodic basis depending on the risk profile and type of audit firm. Audit firms performing audits of public interest entities are subject to regular inspections, while other firms are monitored through a combination of inspections, license renewals, and peer review mechanisms. The framework includes processes for monitoring compliance with professional standards and for taking corrective and disciplinary actions where necessary.

At the firm level, the Swiss Code of Obligations requires audit firms to establish systems of quality control. The Swiss Expert Association for Audit, Tax and Fiduciary (EXPERTsuisse) has issued national quality management standards, including ISQM-CH 1 and ISQM-CH 2, which are based on the International Standards on Quality Management (ISQM) issued by the International Auditing and Assurance Standards Board (IAASB).

The QA review system incorporates several elements of the SMO 1 framework, including an operational inspection system and oversight arrangements. While ISQM 1 and ISQM 2 have been adopted in Switzerland as ISQM-CH 1 and ISQM-CH 2, they are not yet fully effective for all audit firms.

Current Status: Partially Adopted

nitial and continuing professional development requirements for statutory auditors in Switzerland are established under the Federal Act on the Licensing and Oversight of Auditors and the Federal Act on Vocational and Professional Education and Training and related ordinances. The Federal Audit Oversight Authority (FAOA) is responsible for the licensing and registration of auditors, while universities and the Swiss Expert Association for Audit, Tax and Fiduciary (EXPERTsuisse) support the delivery and implementation of professional education and training.

Candidates seeking to qualify as Licensed Audit Experts are required to complete a relevant university degree, obtain a minimum of three years of practical experience, and pass a final professional examination. A separate qualification applies to Licensed Auditors performing statutory limited examinations, which requires at least one year of practical experience. All auditors must be registered with the FAOA to practice.

Continuing professional development requirements are established under the Act and require auditors to complete a minimum of 120 hours over a rolling two-year period. EXPERTsuisse administers professional education programs, examinations, and continuing professional development for its members and supports the implementation of education requirements in the jurisdiction.

EXPERTsuisse reports that it maintains an ongoing process to review and ensure alignment of its education and training programs with the International Education Standards issued by the International Federation of Accountants.

Current Status: Adopted

Auditing standards in Switzerland are established under the Federal Act on the Licensing and Oversight of Auditors and related Federal Audit Oversight Authority (FAOA) regulations. The FAOA is responsible for the oversight of statutory auditors and recognizes the auditing standards applicable in the jurisdiction.

The Swiss Expert Association for Audit, Tax and Fiduciary (EXPERTsuisse) issues Swiss Standards on Auditing, which are based on International Standards on Auditing (ISA) issued by the International Auditing and Assurance Standards Board and incorporate Swiss-specific additions. The 2022 edition of the Swiss Standards on Auditing was based on the October 2018 ISA and has subsequently been updated to incorporate ISA 220 (Revised), ISA 315 (Revised), and ISA 600 (Revised), effective for audits of financial statements for periods beginning on or after December 15, 2024.

For certain public interest entity audits, ISA as issued by the International Auditing and Assurance Standards Board are applied. Audits of financial statements prepared under United States Generally Accepted Accounting Principles may be conducted in accordance with Public Company Accounting Oversight Board standards.

While Switzerland maintains a convergence approach and incorporates updated ISA into national standards on an ongoing basis, ISA are not adopted as issued in their entirety and the latest version is not yet fully effective for all mandatory audits.

The International Standard on Auditing for Audits of Financial Statements of Less Complex Entities has not yet been adopted in Switzerland.

Current Status: Partially Adopted

Ethical requirements for statutory auditors in Switzerland are established under the Swiss Code of Obligations and the Federal Act on the Licensing and Oversight of Auditors. The legal framework focuses primarily on auditor independence requirements, which are enforced by the Federal Audit Oversight Authority (FAOA).

The Swiss Expert Association for Audit, Tax and Fiduciary (EXPERTsuisse) establishes ethical requirements for its members through its Code of Ethics and Professional Conduct and Guidelines on Independence, which are based on the International Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants. EXPERTsuisse reports that its ethical requirements incorporate revisions from the 2018 and 2020 versions of the Code and are updated on an ongoing basis to reflect international developments.

Based on the IFAC translations database, the latest available French translation of the International Ethics Standards Board for Accountants Handbook corresponds to the 2022 edition. No evidence was identified that the latest version of the Code in effect at the time of the assessment has been adopted in its entirety for all professional accountants in Switzerland. Recent updates to the Swiss Guidelines on Independence incorporate selected revisions from the Code, including updates effective for audits beginning on or after December 15, 2025.

Current Status: Partially Adopted

Public sector accounting standards in Switzerland are established at the federal and cantonal levels. At the federal level, the Swiss Federal Finance Administration, under the Federal Department of Finance, is responsible for the development and implementation of public sector accounting standards based on International Public Sector Accounting Standards (IPSAS). The legal framework is established through the Financial Budget Act and Financial Budget Ordinance, which require accrual-based financial reporting aligned with IPSAS, with limited modifications for the Swiss context.

The federal government prepares consolidated financial statements in accordance with IPSAS-based standards and discloses deviations from IPSAS where applicable.

At the cantonal and local levels, public sector accounting frameworks are established independently and are not fully based on IPSAS.

Accordingly, IPSAS have been adopted at the federal level and form the basis of public sector financial reporting in Switzerland.

Current Status: Adopted

The investigation and discipline (I&D) system for statutory auditors in Switzerland is established under the Federal Act on the Licensing and Oversight of Auditors and administered by the Federal Audit Oversight Authority (FAOA). The FAOA has authority to investigate non-compliance by licensed auditors and audit firms, impose enforcement measures, and publish enforcement principles to support transparency in audit oversight.

The FAOA system applies to statutory auditors and audit firms. In addition, the Swiss Expert Association for Audit, Tax and Fiduciary (EXPERTsuisse) operates an I&D system for its members, who join the organization voluntarily. EXPERTsuisse has previously assessed both the FAOA system and its own member disciplinary arrangements as meeting the benchmark of Statement of Membership Obligations 6.

Accordingly, the jurisdiction-level framework includes operational investigation, discipline, and enforcement arrangements for statutory auditors and professional accountancy organization members.

Current Status: Adopted

The financial reporting framework in Switzerland is established under the Swiss Code of Obligations. International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board are accepted as a recognized reporting framework and are permitted for listed and unlisted companies. Standards and amendments are automatically adopted as issued by the IASB, and the IFRS Foundation makes French, German, and Italian translations available for use in Switzerland.

Listed companies in Switzerland are required to prepare financial reporting in accordance with a recognized accounting standard, which may include IFRS Accounting Standards, United States Generally Accepted Accounting Principles, Swiss Generally Accepted Accounting Principles (Swiss GAAP FER), or the accounting standard for banks under Swiss banking legislation.

Accordingly, IFRS are accepted in Switzerland as issued by the IASB and are available for use by domestic publicly accountable entities, but they are not required for all domestic publicly accountable entities in consolidated general purpose financial statements.

The IFRS for SMEs Accounting Standard is permitted for use in Switzerland.

Current Status: Partially Adopted

Relevant Organizations

Federal Audit Oversight Authority (FAOA)

Swiss Expert Association for Audit, Tax and Fiduciary (EXPERTsuisse)

Swiss Federal Finance Administration (FFA)

Swiss Financial Market Supervisory Authority (FINMA)

Swiss GAAP FER Foundation

SIX Swiss Exchange

Relevant Legislation

Federal Act on the Licensing and Oversight of Auditors (Audit Oversight Act)

Federal Act on Vocational and Professional Education and Training

Financial Budget Act

Financial Budget Ordinance

Swiss Code of Obligations

Relevant Publications

• FAOA Annual Report 2025
• FAOA Circular 1/2008 (Status as at December 15, 2023)
• FAOA Principles of Enforcement (2nd Edition)
• Swiss Federal Finance Administration – Federal Accounting Model
• Swiss Standards on Auditing (SA-CH)
• EXPERTsuisse Professional and Auditing Standards