Following a report drawn up by the General Inspectorate of Finance on the certification of the accounts of French small businesses, the Government has included in the Law on business growth and transformation, known as the "PACTE" Law in French, provisions for an harmonization of the thresholds for the appointment of statutory auditors regardless of the corporate form of the company whose accounts are certified, thereby raising the certification thresholds in commercial companies to the level of the thresholds for small businesses provided for in the Accounting Directive 2013/34/EU of the European Parliament and the Council of June 26, 2013.
Focus on the Decree of May 24, 2019 allowing the entry into force of new thresholds contemplated by the PACTE law.
Decree No. 2019-5141 was published on May 24, 2019 and entered into force on May 27, 2019. It raised the thresholds for the appointment of statutory auditors in commercial companies, bringing them in line with those provided for by the PACTE Law2, and before that, by Directive 2013/34UE.
History of the applicable rules
In order to ensure security and reliability, France has traditionally chosen to make accounts certification mandatory for a large number of companies by setting low thresholds for the appointment of statutory auditors, despite the financial constraint that this entailed for these companies, particularly the smallest ones, since a certification of accounts represents an average cost of five thousand five hundred (5,500) euros.
In connection with the report of the General Inspectorate of Finance on "the legal certification of the accounts of French small businesses", the investigations carried out showed that "the effect of the certification of accounts on the quality of such accounts, measured through the rate of tax reassessments and the rate of tax investigations without reassessment, is not significant for small companies that are near the thresholds of the statutory audit. The impact of the certification of accounts on the ability of small businesses that are near these same thresholds to obtain financing, as measured by the French Central Bank's so-called FIBEN rating (business banking database), is equally not significant. The results of the default prevention assignment carried out by the statutory auditors through the alert procedure are also not measured for small businesses, since the default rate of small companies whose accounts have been certified does not differ...