PRH notifies thousands of companies about unsuitable auditor

The Patent and Registration Office reminds companies about what kinds of auditors can be approved.

The Patent and Registration Office (PRH) says that thousands of limited companies have registered as auditors, persons who are not approved auditors. The PRH is posting these companies notices, urging them to correct their Trade Register records.

The notice is posted to the company’s postal or visiting address stored in the Business Information Service.

The notice contains instructions for three different situations, depending on whether the company is obliged to select an auditor. If it is not, the business owner must check whether the articles of association contain a clause on auditors.

The PRH notes that a company’s AGM must decide on the choice of auditor and any changes to the articles of association. After the AGM, the business owner must submit an amendment notification to the Trade Register in accordance with the instructions in the letter. See the notification instructions here.

Company may be fined

Only an approved auditor or auditing firm (HT, KHT), pursuant to the Auditing Act, may act as the auditor or auditing firm. Check the PRH’s auditor search for approved auditors.

A limited company must make an amendment notification to the Trade Register if the registered details change. The company can check its registered details in a Trade Register excerpt, downloadable for free from Virre. That is where registered articles of association can also be published.

The PRH says it can fine companies that fail to correct deficient or erroneous information in their company records, despite having received notices from the PRH to do so. The fine is €300, and €600 for public limited companies and societates Europaeae.

If a business does not correct its information after the first fine, the PRH sends the business a new notice. If the business does not correct its information, even after this new notice, the PRH issues and new fine, twice as large as the first one.

The fine is based on the Trade Register Act, which sets the amounts of the fines.

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