Högskolan i Skövde

Today all private corporations are obligated by statutory audit. The government of Sweden appointed an investigation to conclude if the audit should be statutory or not. The investigator presented on the third of April 2008 a report (SOU 2008:32) that suggests abolishment of the statutory audit for approximately 97 % of all private corporations in Sweden. This will result in certain effects on the banks credit rating because of the fact that the banks trust the audited accounts to have been audited by an independent audit.

The most important in the banks credit rating are: personal judgement, business concept, business plan and repayment ability. The banks also use the private corporations audited accounts in its credit rating.

We conducted a case study by interviewing four bank officials in different banks in Skövde and Tibro. The purpose of the study was to investigate the banks credit rating and the audits importance in the credit rating.

The conclusion deducted from our case study it that the confidence between the bank and the company is very high valued and that the audit is a sign of quality.