EXECUTIVE SUMMARY AUDITING OF ACCOUNTS IN COMPANIES

AUDITING OF ACCOUNTS IN COMPANIES

PART IARE AUDITED

COMPANIES DIFFERENT?

EXECUTIVE SUMMARY

Published byInstituto de CensoresJurados de Cuentas de España

Editorial office and administration: Paseo de la Habana, 128036 Madrid

Phone:+34 91 446 03 54

e-mail:[email protected]

Address:Department of Studies

Coordination:Department of Communication

ISBN: 978-84-17367-19-0

AUDITING OF ACCOUNTS IN COMPANIESPART I ARE AUDITED COMPANIES DIFFERENT?

3

WORK TEAM:

This report has been drawn up by the following researchers:

D. Andrés Lucendo,

Vice-president of the Agrupación de Galicia, Auditor (member of the ROAC)

and Accounting Expert (Member of the REC).

D. Carmelo García,

Lecturer at the University of Alcalá

D. Adrián Cabrera,

AIREF-UAH Research Department

September 2020

AUDITING OF ACCOUNTS IN COMPANIES

PART IARE AUDITED

COMPANIES DIFFERENT?

EXECUTIVE SUMMARY

4 AUDITING ACCOUNTS IN COMPANIES EXECUTIVE SUMMARY PART I ARE AUDITED COMPANIES DIFFERENT?


5

Index

LETTER FROM THE PRESIDENT 7

ABOUT US 9

NATURE OF THE STUDY AND CHARACTERISTICS OF THE POPULATION 11

CONCLUSIONS OF THE STUDY 13

MAIN CHARACTERISTICS OBSERVED 15

INDICATORS ANALYSED: MAIN RESULTS 19

Net turnover 19

Number of employees 20

Total assets 20

Indebtedness 22

EBITDA 23

Profitability (ROA) 24

CAN THESE CONCLUSIONS BE EXTRAPOLATED TO SMES? 25

SMEs - Net Turnover 26

SMEs - Number of employees 27

SMEs - Total assets 28

SMEs - Indebtedness 30

SMEs – Financial performance 32

SMEs - EBITDA 34

SMEs - Corporate Taxes 36

SMEs - Profitability (ROA) 38



7

Letter from the president

Audit is an essential asset in the transparency of financial markets and the professionalisation of companies. This

is a reality that no one doubts, and, in fact, it is the main reason why its practice is subject to a constant quest for

technical and legal improvements that guarantee its efficiency and adaptation to any new challenges that arise.

However, until now, very few studies have been conducted worldwide on the exact effect that auditing has on the

various parameters that investors and company management use to make decisions and assess the performance

of their companies. This study not only sheds light on this effect, but also provides insight into the extent to which

auditing is a differentiating factor between companies that do and do not audit their accounts, with a clear positive

influence on their profitability, transparency, indebtedness and job creation capacity.

The conclusions in the section on small and medium-sized companies seem to me to be particularly relevant. In

this debate that is taking place worldwide on whether smaller companies need to be audited and on the need to

adapt technical auditing standards to the work carried out in them, this report shows that audited SMEs are more

profitable, reflect the value of their assets better in their balance sheets and cope better with crises than those that

are not audited. This conclusion should lead our legislators and the international bodies to draw up technical stan-

dards to reflect on the best way to promote auditing among these types of companies. In this respect, reducing the

mandatory limits on statutory audits is a measure that would undoubtedly help small and medium-sized Spanish

companies to advance in their professionalisation processes and to access the financial resources they will need to

tackle the complex economic situation they are facing, which is why it should form part of the Government's reform

agenda without delay.

I hope you find this study interesting, and I encourage you to keep a close eye out for its second part, in which we

will analyse in more detail the relationship between auditing and company financial performance, while paying

special attention to voluntary work.

Ferrán RodríguezPresident of ICJCE



9

About us

The Instituto de Censores Jurados de Cuentas de España (ICJCE), created in 1942, is a private institution with its

own legal personality, recognised as a public law corporation, which brings together auditors and audit firms.

This institution is representative of auditors and audit firms operating in Spain. It defends the interests of its

members and ensures the development and proper functioning of the auditing activity.

Most relevant characteristics of the ICJCE:

• Main representative of the audit profession in Spain.

• Spain's representative in the international bodies (IFAC and AcE) that bring together auditors worldwide.

• More than 5,000 associated professionals.

• Nearly 700 firms.

• ICJCE firms account for 83% of the sector's turnover.

• More than 25,000 people work in ICJCE firms.



11

Nature of the study and characteristics of the population

The Instituto de Censores Jurados de Cuentas de España (hereinafter ICJCE) has conducted this study of Spanish

companies by analysing, for a set of key economic and financial indicators, the performance of companies that are

obliged to audit their annual accounts, in accordance with current regulations, with respect to companies that are

not obliged to audit their annual accounts, as they do not meet the quantitative requirements established for this

purpose.

To conduct the study, the ICJCE has used a database called SABI prepared by Informa D&B, a company

specialized in the management of economic and financial information of Spanish companies. The database used

includes economic and financial information obtained from the annual accounts filed with the Mercantile Registry

by Spanish companies. It also includes financial ratios prepared by the database management company itself, as

well as general information on the companies included in the database.

Through this database, a sample of 89,568 Spanish companies has been obtained that are currently active, and that

had operating revenues of more than 500,000 euros in the years 2008 to 2018, both inclusive.

The economic and financial indicators that have been analysed and which have also been obtained from the

aforementioned specialised database are as follows:

• Net turnover

• Employees

• Total assets

• Indebtedness

• Financial performance

• EBITDA

• Corporate income tax

• Profitability (ROA)

In the sample of Spanish companies analysed on the basis of the criteria indicated in the previous section, companies

with NACE "Activities of head offices" and "Activities of holding companies" have not been included, as it has been

considered that these activities do not correspond to the development of a business in the strict sense, but rather to

obtaining returns from other investees, many of which are already included in the analysed population. Companies

whose legal forms correspond to co-operatives, associations, partnerships and limited partnerships, etc. were not

considered either, with the analysis focusing on public limited companies and private limited companies.


The breakdown of companies according to whether or not they audit their annual accounts, and their legal form is

as follows:

One third of the companies analysed audit their annual accounts (34.22%) and two thirds do not audit them (65.78%).

Of the companies audited, 50% are public limited companies and 50% private limited companies, while those that

are not audited are mainly private limited companies (83%).

Audited/Legal form

Audited

Public limited company

Private limited company

Non-audited

Public limited company

Private limited company

Total companies

No. of companies

30.647

15.296

15.351

58.921

9.987

48.934

89.568

Percentage

34,22%

17,08%

17,14%

65,78%

11,15%

54,63%

100,00%


13

Conclusions

This report analyses the trend of various ratios in the audited and non-audited companies during the period 2008 -

2018. The main conclusions that can be drawn from this analysis are:

• The turnover of the audited companies grew more and recovered faster from the 2008 crisis than that of the

non-audited companies.

• The audited companies created more employment. By 2018, the audited companies had increased their

average number of employees by 14.23% compared to 2008, almost 12 points more than the non-audited

companies.

• The value of assets recorded in the accounts of the non-audited companies grew significantly more than that

of the audited companies due to the fact that the balance sheets of the former did not record asset write-downs

during the crisis.

• The audited companies have lower indebtedness than the non-audited companies.

• The EBIDTA of the audited companies grew threefold over the ten years and withstood the economic crisis

better.

• In all the years analysed, the profitability of the audited companies was higher than that of the non-audited

companies. Only the profitability of the audited companies has exceeded 2008 levels.

Most of these findings can be extrapolated to the audited SMEs:

• The audited SMEs increased their average sales between 2008 and 2018 by 15.69% and the non-audited

SMEs by 6.55%, about nine percentage points difference.

• The audited SMEs increased their average number of employees between 2008 and 2018 by 9.86% and the

non-audited SMEs by 2.68%, a difference of more than seven percentage points.

• The assets of the audited SMEs grew less, due to the write-downs they underwent during the crisis.

• The audited SMEs increased their average profits between 2008 and 2018 by 65.20% and the non-audited

SMEs by 38%, almost 27 percentage points more in the audited SMEs.

• The audited and non-audited SMEs had an even profitability in 2008 and 2009, but from that year onwards

the audited SMEs had a higher average profitability.



15

Main characteristics observed

The main characteristics observed among the set of companies analysed are:

TYPES OF ENTERPRISES - EUROPEAN COMMISSION REGULATION (EU) NO. 651/2014

1) 91% of the 89,568 companies analysed are SMEs.

53,29%

47.738

16.249

18,14%8,65%

19,9% 17.8317.750

MICRO

<=10 WORKERS

<=EUR 2 M. SALES

<=EUR 2 M. ASSETS

SMALL

<=50 WORKERS

<=EUR 10 M. SALES

<=EUR 10 M. ASSETS

MEDIUM

<=250 WORKERS

<=EUR 50 M. SALES

<=EUR 43 M. ASSETS

COMPANY SIZE 2018

SMALLMICRO-ENTERPRISE MEDIUM LARGE


2) One third of the companies are public limited companies

3) One third of the companies audit their accounts

70,000

60,000

50,000

40,000

30,000

20,000

0

71.7%

28.23%

PRIVATE LIMITED PUBLIC LIMITED

64,285

25,283

10,000

65.78%

34.22%

AUDITED NON AUDITED

58,921

30,647


17

4) 80% of the companies have sales of less than six million euros

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

00 - 2,000 2,000 - 6,000 6,000 - 10,000 10,000 - 25,000 25,000 - 50,000 >250,00050,000 - 100,000 100,000 - 250,000

2008 2018

NUMBER OF COMPANIES BY SALES RANGE (THOUSAND EUROS)


5) More than 25% of the audited companies have sales of less than six million euros

120%

100%

80%

60%

40%

20%

0%0 - 2,000 2,000 - 6,000 6,000 - 10,000 10,000 - 25,000 25,000 - 50,000 >250,00050,000 - 100,000 100,000 - 250,000

9.91%

26.11%

83.05%

95.90% 99.67% 99.94% 100% 100%

This percentage is relevant because, taking into account the current limits for mandatory statutory audit, this

would be an indicative indicator of the approximate percentage of companies that are audited voluntarily.

% OF THE COMPANIES AUDITED BY SALES RANGE


19

Indicators analysed

THE AUDITED COMPANIES' SALES GREW BY 10 PERCENTAGE POINTS MORE

The audited companies had average sales in 2018 of 38.74 million euros, an increase of 16.43% compared to their

average sales in 2008. The non-audited companies had average sales in 2018 of 2.15 million euros, 6.6% more than

in 2008, 9.83 percentage points less than the audited companies.

The average annual rate of sales growth over the ten-year period was 1.7% per year for the audited companies and

0.8% for the non-audited companies, 0.9 percentage points lower.

It took the audited companies eight years to recover the level of revenues they had at the start of the crisis in 2008,

while it took one more year for the non-audited companies to exceed the 2008 amount.

Net turnover

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

2,500

2,000

1,500

1,000

500

02008 2009 2010 2011 2012 2013 2014 2015 2016 2017

2,020

1,789 1,815 1,8251,751 1,737

1,8011,898 1,958

2,0722,154

2018

Average net turnover (1)

Audited Non audited

33,270 28,982 30,748 32,054 31,997 31,844 32,256 32,832 33,499 36,296 38,737

(1) Figures in thousands of euros


Number of employees

THE AUDITED COMPANIES CREATED MORE EMPLOYMENT OVER THE TEN YEARS

The average annual rate of increase of employees over the ten years was 1.4% for the audited companies and 0.3%

for the non-audited companies. The audited companies grew by 1.1 percentage points more than the non-audited

companies.

By 2018, the audited companies had increased their average number of employees by 14.23% compared to 2008,

while the non-audited companies only increased by 2.4%, 11.83 percentage points less than the audited companies.

The audited companies matched the average number of employees at the beginning of the period in 2015, while the

non-audited companies did not manage to exceed that level until 2017.

145.0

140.0

135.0

130.0

125.0

120.0

115.0

110.0

105.0

13

16

15

14

12

11

102008 2009 2010 2011 2012 2013 2014 2015 2016 2017

15.,1 15.0

2018

Average number of employees

Audited Non-audited

124 121 122 121 119 118 120 124 130 136 141

14.314.1

14.0

13.6

13.3

13.514.0

14,.5

15.4


21

Total assets

THE NON-AUDITED COMPANIES GREW MORE, BUT THE AUDITED COMPANIES RESTRUCTURED THEIR

ASSETS

The average asset value of the audited companies in 2018 was 44.25 million euros, 13.7% higher than in 2008,

while the non-audited companies had average assets of 2.39 million euros in 2018, 23.87% higher than in 2008. The

non-audited companies increased their assets ten percentage points more than the audited companies.

The audited companies impaired their assets (fixed assets, inventories, customers and financial assets) by EUR 147

million (1.07% p.a.), while non-audited companies impaired EUR 128 million (0.1% p.a.), of which EUR 114 million

was realised by only one company in 2014.

The audited companies wrote-down their assets in the crisis, while the non-audited companies did not.

Average profits (1)

45,000

44,000

43,000

42,000

41,000

40,000

39,000

38,000

37,000

36,000

35,000

2,000

1,500

1,000

500

3,000

2,500

02008 2009 2010 2011 2012 2013 2014 2015 2016 2017

2,392

2018

Audited Non-audited

38,929 38,225 39,818 40,286 40,557 40,338 40,104 40,550 41,602 42,882 44,258

1,951 2,007 2,025 2,028 2,045 2,0792,145

2,3212,217

1,931



Indebtedness

THE AUDITED COMPANIES WITH THE LOWEST AVERAGE DEBT

In the ten years analysed there was a continuous process of generalised deleveraging. The audited companies re-

duced their indebtedness by 8.09 points, while the non-audited companies reduced it by 10.88 points.

In 2018, the average indebtedness of the audited companies was 59.7%, while that of the non-audited companies

was 61.6%, two points higher.

The average indebtedness of the audited companies was lower than that of the non-audited companies for eight of

the ten years covered by the study.

In the last two years the situation is reversed, with the average indebtedness of the audited companies being one

point higher than that of non-audited companies, due to the lower growth of audited companies' results.

% average indebtedness

62%

60%

58%

56%

54%

52%

46%

48%

50%

65%

40%

55%

50%

45%

60%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

50.67%

2018

Audited Non-audited

59.69% 57.77% 57.16% 56.09% 54.97% 54.45% 53.97% 53.22% 52.41% 52.28% 51.60%

59.55%58.58%

57.27%56.12%

55.37%54.58%

53.55%52.60%

51.74%

61.55%


23

EBITDA

THE AUDITED COMPANIES GREW THREEFOLD IN THE TEN YEARS AND WITHSTOOD THE CRISIS BETTER

The average EBITDA of the audited companies was EUR 3.80 million in 2018, having increased by 19.26% since

2008. In contrast, the non-audited companies had an average EBITDA of 0.18 million euros in 2018, having increa-

sed over the ten years by 5.8%. Therefore, the audited companies increased their average EBITDA over the years of

the study by three times as much as the non-audited companies.

The average annual rate of change of EBITDA in the period was 2.3% for the audited companies while for the

non-audited companies it was 1.1%, the difference in change being more than double.

The average EBITDA had a continuous decline in the initial years between 2008 and 2013, which were the years

in which the economic and financial crisis manifested itself with the greatest intensity. This was more pronounced

in the non-audited companies (-34.3%) than in the audited companies (-16.46%), even though they had carried out

impairment of their assets, which the non-audited companies did not do.

Average EBITDA (1)

4,000

3,500

3,000

2,500

1,500

2,000

1,000

500

0

200

180

140

100

20

40

0

160

120

80

60

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Audited Non-audited

3,183 2,682 3,053 2,720 2,609 2,659 2,733 2,729 3,204 3,372 3,796

147 142

127

114 113130

148

161

177172182



Profitability (ROA)

THE AUDITED COMPANIES INCREASED THE PROFITABILITY DIFFERENTIAL BY ONE POINT

COMPARED TO THE NON-AUDITED COMPANIES

The average profitability of the audited companies in 2018 was 5.90%, surpassing the profitability that existed in

2008 which was 5.47%, increasing 7.86%. For the non-audited companies, the average profitability in 2018 was

4.92%, which was lower than in 2008 at 5.41%, decreasing by 9.06%.

In the ten years analysed, the difference in profitability between the audited and non-audited companies increased

by one point in favour of the audited companies.

In all years, the profitability of the audited companies was higher than that of the non-audited companies.

The audited companies had an average annual profitability of 4.5% over the ten years while for the non-audited

companies it was 3.8%, 0.7 percentage points higher for the audited companies.

Profitability (ROA)

7.0%

3.0%

5.0%

6.0%

4.0%

2.0%

1.0%

0.0%

6.0%

5.0%

4.0%

2.0%

0.0%

3.0%

1.0%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Audited Non-audited

5.47% 4.08% 4.28% 3.40% 2.48% 2.72% 4.00% 5.19% 5.90% 6.00% 5.90%

3.83%3.48%

2.63%

1.71% 2.02%

3.13%

4.33%

4.84% 5.10%5.41%

4.92%


25

SMEs are an essential source of job and wealth creation for the Spanish economy. For this reason, it is very impor-

tant to know the effect that the practice of audit can have on their competitiveness and good management, and thus

shed light on the debate that is taking place worldwide on the need to make these audits mandatory or otherwise.

Of the 89,568 Spanish companies analysed in the study carried out by the ICJCE, 71,418 met the conditions for mi-

cro, small and medium-sized companies, as defined by the European Commission, between 2008 and 2018: turno-

ver of less than 50 million euros, balance sheet total of less than 43 million euros and employees of less than 250.

Of these SMEs, 29.37% audit their annual accounts and 70.63% do not audit them. Of those audited, some do not

met the mandatory audit thresholds.

The behaviour of the audited SMEs compared to the non-audited SMEs is analysed below.

Can these conclusions be extrapolated to SMEs?


SMEs - Net turnover

SALES OF THE AUDITED SMES GREW BY 10 PERCENTAGE POINTS MORE THAN THE NON-AUDITED

SMES

The audited SMEs increased their average sales between 2008 and 2018 by 15.69% and the non-audited SMEs by

6.55%, a difference of more than ten percentage points (graph below).

Average SME sales (1)

12,000

4,000

8,000

10,000

6,000

2,000

0

2,500

2,000

1,500

500

0

1,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Audited Non-audited

8,335 7,247 7,411 7,477 7,206 7,227 7,594 8,136 8,493 9,150 9,643

1,779 1,807 1,817 1,7431,729 1,793

1,8961,957

2,0682,0162,148

(1) Thousands of euros


27

SMEs - Number of employees

Average number of SME employees

50

45

40

35

30

20

10

25

15

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

14.91

40.8638.66 38.46

37.51 37.03 37.7139.31

14.22 13.87 13.47 13.20 13.43 13.88

42.95

15.2914.34

40.89

44.89

14.00

39.10

14.87

Audited Non-audited

The audited SMEs increased their average number of employees between 2008 and 2018 by 9.86% and the non-au-

dited SMEs by 2.68%, a difference of more than seven percentage points (graph below).


The assets of the audited SMEs grew less than those of the companies analysed as a whole, due to the write-downs

they underwent during the crisis.

SMEs - Total assets

Value of assets of audited companies (1)

45,000

41,000

43,000

44,000

42,000

39,000

38,000

37,000

36,000

40,000

35,000

9,000

8,000

7,000

5,000

4,000

3,000

2,000

1,000

6,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total SMEs

38,929 38,225 39,818 40,286 40,557 40,338 40,104 40,550 41,602 42,882 44,258

6,7926,955 6,965 6,860 6,894 7,074

7,3587,662

8,103

6,092

8,444

This trend is particularly pronounced in certain periods and sectors. For example, in the real estate sector.

(1) thousands of euros

Value of assets real estate activities (1)

95

90

85

80

75

70

15.5

15.0

14.5

14.0

13.5

16.5

16.0

12.5

13.0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

16.3

2018

Audited Non-audited

92 84 86 85 86 81 79 79 81 84 89

14.2

14.614.8

14.9 14.914.9

15.2

15.6

16.0

13.9



29

Audited SMEs increased their average assets between 2008 and 2018 by 22.34% and non-audited SMEs by 25.42%,

a difference of three percentage points (graph below).

Average asset value of SMEs (1)

9,000

5,000

7,000

8,000

6,000

3,000

2,000

1,000

4,000

0

2,500

2,000

1,500

500

0

1,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Audited Non-audited

6,902 6,782 6,955 6,965 6,860 6,894 7,074 7,358 7,662 8,103 8,444

1,671 1,719 1,733 1,729 1,745 1,7871,850

1,9172,006

1,656

2,077



THE AUDITED SMES LESS INDEBTED THAN THE NON-AUDITED SMES

The audited SMEs reduced their average indebtedness between 2008 and 2018 by 8.17 points and the audited com-

panies in the overall survey by 8.09 points, with no differences between them (graph below).

SMEs - Indebtedness

Indebtedness of the audited companies

62.0%

54.0%

58.0%

60.0%

56.0%

50.0%

48.0%

52.0%

46.0%

60.00%

58.00%

56.00%

52.00%

50.00%

48.00%

46.00%

44.00%

54.00%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total SMEs

59.69% 57.77% 57.16% 56.09% 54.97% 54.45% 53.97% 53.22% 52.41% 52.28% 51.60%

56.06%55.40%

58.25%

52.99%52.45% 52.14%

51.47%50.53% 50.51%

58.25%

50.08%


31

SME indebtedness

62,0%

54,0%

58,0%

60,0%

56,0%

50,0%

48,0%

52,0%

46,0%

65%

60%

55%

45%

40%

50%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Audited Non-audited

58.25% 56.06% 55.40% 54.18% 52.99% 52.45% 52.14% 51.47% 50.63% 50.51% 50.08%

59.34%58.32%

57.01%55.90%

55.09%54.25%

53.23%52.24%

51.55%

61.38%

50.49%

The audited SMEs reduced their average indebtedness between 2008 and 2018 by 8.17 points, and the non-audited

SMEs by 10.89 points, 2.73 points more equalling their level in 2018 as their indebtedness was higher in 2008 (graph

below).


THE AUDITED SMES INCREASED THEIR RESULTS MORE THAN THE NON-AUDITED SMES

The audited SMEs increased their average results between 2008 and 2018 by 65.20% and the audited companies in

the overall study by 54.89%, ten points more in SMEs (graph below).

SMEs - Results

The audited companies results

2,500

500

1,500

2,000

1,000

0

450

400

350

250

200

150

100

50

0

300

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total SMEs

1,452 1,035 1,422 1,334 734 962 1,255 1,111 1,779 1,815 2,249

177

193 163

121

145

228

302

366

403

251

414


33

The audited SMEs increased their average profits between 2008 and 2018 by 65.20% and the non-audited SMEs by

38%, almost 27 points more in the audited SMEs (graph below).

Average SME profits (1)

450

400

350

300

250

100

0

150

50

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

63

251

193163

121145

228

302

46 3729 34 46

52

403

8773

366

414

45

177

85

Audited Non-audited



THE AUDITED SMES INCREASED THEIR EBITDA 14 TIMES MORE THAN THE NON-AUDITED SMES

The audited SMEs increased their average EBITDA between 2008 and 2018 by 19.8% and the audited companies

in the overall study by 19.26%, with virtually no difference between them (graph below).

SMEs - EBITDA

EBITDA average audited companies (1)

4,500

4,000

500

2,500

2,000

1,500

3,500

3,000

1,000

0

900

800

700

500

400

300

200

100

0

600

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total SMEs

3,413 3,038 3,283 3,034 3,088 2,943 2,931 3,001 3,394 3,576 3,960

529 543505

447 461

545

630

702758

651

780



35

The audited SMEs increased their average EBITDA between 2008 and 2018 by 19.8% and the non-audited SMEs

by 5.7%, almost 14 points more in the audited SMEs (chart below).

Average SME EBITDA (1)

900

800

700

600

500

300

0

400

200

100

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Audited Non-audited

161

651

543505

447 461

545

630

136118

105 104 118 139

758

152

702

780

131

529

166



THE AUDITED SMES INCREASED THEIR CORPORATE TAX EXPENSE LESS THAN THE NON-AUDITED

SMES

The non-audited SMEs increased their average corporate tax expense between 2008 and 2018 by 16.7% and the

audited companies in the overall survey by 9.3%. This was seven points higher in the SMEs (graph below).

SMEs - Corporate income tax

Corporate income tax paid by the audited companies (1)

600

500

300

0

400

200

100

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total SMEs

108

482471

360337 343

470

366

79 75 65 70 93109

469

126115

477

527

84

352

123



37

The audited SMEs increased their average corporate tax expense between 2008 and 2018 by 16.7% and the

non-audited SMEs by 21.74%, five points more in the non-audited SMEs (graph below).

Corporate income tax paid by SMEs on average (1)

140

120

100

80

60

20

0

40

200

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Audited Non-audited

23

108

84

75

6570

93

109

18 14 13 13 1722

123

2825

115

126

17

79

28



THE AUDITED SMES INCREASED THEIR PROFITABILITY MORE THAN THE NON-AUDITED SMES

The profitability (ROA) of the audited SMEs and the audited companies in the overall study was almost identical

between 2008 and 2018 (bottom chart).

SMEs - Profitability (ROA)

Audited companies profitability

7.0%

6.0%

5.0%

4.0%

3.0%

1.0%

0.0%

2.0%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Pymes

5.50%

5.80%


39

The audited and non-audited SMEs had an even profitability in 2008 and 2009, but from that year onwards the

audited SMEs had a higher average profitability (bottom chart).

SME profitability

7.0%

6.0%

5.0%

4.0%

3.0%

1.0%

0.0%

2.0%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Audited Non-audited

5.39%

5.50%

3.96%

3.19%

2.20%

2.57%

3.92%

5.18%

3.78%

2.56%

1.62%

2.02%

3.13%

4.35%

6.07%

4.94%4.89%

5.92% 5.80%

3.47%

3.89% 5.17%

Paseo de la Habana, 1 · 28036 - MadridTel.: 91 446 03 54 · Fax: 91 447 11 62

E-mail: [email protected]: www.icjce.es

EXECUTIVE SUMMARY AUDITING OF ACCOUNTS IN COMPANIES

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