Statutory Audit in Milan: obligations, procedure and services

Updated June 2026 — By Studio Genise, Certified Public Accountants and Statutory Auditors

What is statutory audit

Statutory audit is the independent control activity aimed at verifying that the annual financial statements (and, where mandatory, the consolidated financial statements) of a company have been prepared in compliance with the law and applicable accounting principles, providing a true and fair representation of the company's asset, economic and financial situation.

The statutory auditor is responsible for expressing, on the basis of international auditing standards (ISA Italia), an independent professional opinion on the financial statements: this opinion provides guarantees to shareholders, banks, investors, suppliers and public administrations regarding the reliability of the published economic and financial information.

The activity is regulated by Legislative Decree 27 January 2010, no. 39 (implementing Directive 2006/43/EC), updated by Legislative Decree 135/2016, and is carried out in compliance with international auditing standards (ISA Italia) and the Code of Ethics for Professional Accountants.

Studio Genise, active in Milan since 1979, provides a team of statutory auditors registered with the MEF Register (Italian Ministry of Economy and Finance), qualified to ensure accuracy, transparency and compliance of corporate financial statements.

When statutory audit is mandatory

The obligation to appoint a statutory auditor or audit firm varies depending on the corporate form and size of the company.

Statutory audit for S.p.A. (Italian joint-stock companies)

In Joint Stock Companies (S.p.A.) adopting the traditional governance system, statutory audit is always mandatory and may be performed by:

• an audit firm or a statutory auditor registered in the special MEF Register;
• in the cases provided for in art. 2409-bis of the Italian Civil Code, also by the Board of Statutory Auditors, provided that all members are registered in the Statutory Auditors Register.

The appointment of the supervisory body is always mandatory for S.p.A., regardless of size.

Statutory audit for S.r.l. (Italian Limited Liability Companies)

For Limited Liability Companies (S.r.l.), the obligation to appoint the supervisory body or statutory auditor, governed by art. 2477 of the Italian Civil Code, arises when the company:

• is required to prepare consolidated financial statements;
• controls a company subject to statutory audit;
• has exceeded for two consecutive financial years at least one of the following dimensional limits:
  • total balance sheet assets: €4 million;
  • revenues from sales and services: €4 million;
  • employees employed on average during the financial year: 20 units (ULA).

In such cases, the S.r.l. may choose to appoint:

• a single auditor with supervisory and audit functions (if registered with the Auditors Register);
• a Board of Statutory Auditors with integrated supervisory and audit functions;
• or appoint separately the supervisory body (single auditor/board of auditors) and the auditor/audit firm.

The obligation ceases when for three consecutive financial years none of the three limits is exceeded.

Summary table of audit obligations

Corporate form	Audit obligation
S.p.A. (traditional system)	Always mandatory
S.A.p.A.	Always mandatory
S.r.l. with consolidated statements	Mandatory
S.r.l. controlling a subject company	Mandatory
S.r.l. above art. 2477 c.c. limits	Mandatory
S.r.l. below the limits	Voluntary (recommended)
Cooperatives (beyond certain requirements)	Mandatory
Third Sector Entities (beyond thresholds)	Mandatory

Who can perform statutory audit

Statutory audit may only be performed by:

• Statutory auditors (natural persons) registered in the Register of Statutory Auditors held by the Ministry of Economy and Finance (MEF);
• Statutory audit firms registered in the same Register;
• Members of the Board of Statutory Auditors in companies where the supervisory body also performs audit, provided that all auditors are registered.

To be registered in the MEF Register it is necessary to:

• hold a suitable degree (e.g. economics or legal subjects with specific exams);
• have completed a three-year traineeship at a qualified auditor or audit firm;
• have passed the qualifying examination for the profession of statutory auditor;
• be up-to-date with continuing professional education (at least 20 hours per year, of which 10 in characterizing subjects);
• comply with the obligations of independence and integrity requirements.

The statutory audit procedure

Statutory audit is an articulated process that takes place throughout the financial year and consists of several stages.

1. Planning

The auditor gathers information on the company, internal organization, control system and identifies risk areas. Based on these evaluations, they prepare a customized audit strategy, defining the most suitable verification procedures.

2. Verification procedures

Periodic verifications (at least quarterly) are carried out on the regular keeping of accounting records and on the correct recording of business events. Audit procedures include:

• Compliance tests on internal controls;
• Detail tests on the most significant items of the financial statements;
• Analytical procedures and comparison with historical and sector data;
• Circularizations of banks, customers, suppliers, professionals;
• Physical inventory counts;
• Going concern verification.

3. Financial statements audit

At the end of the financial year, the auditor performs final verifications on the draft financial statements prepared by the directors, on the explanatory notes and on the management report.

4. Audit report

The auditor issues an audit report to be attached to the financial statements intended for the shareholders' meeting, containing their professional opinion (unqualified, qualified, adverse or disclaimer of opinion).

The report is a document of fundamental importance, as it confers credibility and reliability to the financial statements vis-à-vis all stakeholders.

Difference between statutory and voluntary audit

Statutory audit is that required by law in the cases seen above. Voluntary audit is instead carried out at the company's initiative even in the absence of a legal obligation, because considered strategic to:

• improve credibility with banks for financing applications;
• strengthen credibility towards suppliers, customers and commercial partners;
• prepare the company for extraordinary operations (M&A, new shareholders, IPO);
• improve internal control and administrative processes;
• prepare for a future legal obligation.

Studio Genise performs both mandatory statutory audit and tailored voluntary audit, adapting the level of depth to the client's actual needs.

Due diligence and extraordinary accounting audit

Accounting audit is not only useful for legal obligations: it is also a strategic tool for preventive analysis and protection in extraordinary operations.

Accounting due diligence is particularly important in case of:

• Mergers and acquisitions (M&A): verification of the target's asset and economic status;
• Issuance of financial instruments (shares, bonds, minibonds);
• Valuation of real estate as collateral for credit exposures;
• Verifications in judicial procedures or sale and purchase transactions;
• Contributions of business or business unit;
• Corporate restructuring operations.

With due diligence, the Studio Genise team gathers and verifies accounting and extra-accounting data, providing an independent opinion on the real value of the company or operation.

Statutory audit costs

The costs of a statutory audit engagement depend on various factors:

• size of the company (total assets, revenues, employees);
• complexity of the organization and operations performed;
• presence of subsidiaries or operations in multiple countries;
• level of internal control already in place;
• existence of extraordinary operations in the financial year.

The audit engagement generally has a three-year duration and the fee is established at the time of appointment, based on the principles of independence and proportionality provided for by the regulations. Studio Genise offers transparent annual quotes, with a clear pricing structure defined at the time of appointment.

Request a personalized quote for your company.

Why choose Studio Genise for statutory audit

• Statutory auditors registered with the MEF Register with long experience;
• 40 years of experience in auditing ordinary and extraordinary financial statements;
• Complete assistance: from appointment of the supervisory body to periodic audit;
• Multidisciplinary support with accountants, lawyers and labor consultants;
• Transparent and independent approach, to ensure credibility to the financial statements;
• International service in Italian and English for Italian subsidiaries of foreign groups;
• Scheduled periodic verifications and clear reporting for management.

Frequently asked questions about statutory audit

What is statutory audit?

It is the independent control activity on the financial statements of a company, aimed at verifying that they are prepared in compliance with the law and applicable accounting principles, and that they truthfully and correctly represent the company's asset, economic and financial situation.

When is statutory audit mandatory?

It is always mandatory for S.p.A. and S.A.p.A. For S.r.l. it becomes mandatory when one of the limits of art. 2477 c.c. (assets €4 million, revenues €4 million, 20 employees) is exceeded for two consecutive years, or when the company is required to prepare consolidated financial statements or controls subject companies.

Who can perform statutory audit?

Only statutory auditors (natural persons) or audit firms registered in the Register held by the MEF. To be registered, a suitable degree, three-year traineeship, qualifying examination and mandatory continuing education are required.

What is the difference between statutory and voluntary audit?

Statutory audit is imposed by law in the cases provided for by Legislative Decree 39/2010. Voluntary audit is carried out at the company's initiative even in the absence of a legal obligation, to improve credibility with banks and stakeholders or to prepare extraordinary operations.

How long does the audit engagement last?

The statutory audit engagement has a three-year duration and is renewable. Early termination may occur only for just cause.

How much does statutory audit cost?

Costs depend on the size and complexity of the company, the presence of subsidiaries, the level of internal control and any extraordinary operations. The fee is established at the time of appointment. Studio Genise offers transparent annual quotes.

What does the auditor's report contain?

It contains the auditor's professional opinion on the financial statements (unqualified, qualified, adverse or disclaimer of opinion), together with the reasons and audit principles used. It is a document of fundamental importance that confers credibility to the financial statements.