Summary

The Federal Council has approved the 2025 business report of the Audit Oversight Authority (RAB). The RAB conducted 15 inspections in Financial Audit and recorded an increase in average findings per mandate from 0.6 to 0.8. In Regulatory Audit, these values rose from 0.7 to 0.9 among nine inspected companies. The number of licensed audit firms declined to 1,670 (previous year: 1,738), while the number of licensed natural persons increased to 10,277. The RAB assesses the overall quality of audit services as satisfactory.

Persons

  • Federal Council (collective; approving body)

Topics

  • Audit oversight
  • Quality control
  • Financial market regulation
  • Sustainability audit (ESG)
  • Artificial intelligence in auditing

Clarus Lead

The RAB is intensifying its supervisory activities in a rapidly changing regulatory environment. With the reorganization of its supervisory structure effective January 1, 2026, and the new reporting requirement for private equity investments in audit firms, the authority is responding to growing market concentration and control risks. Particularly significant: The Federal Council is transferring to the RAB the role as licensing and supervisory authority for sustainability auditors, which substantially expands its competencies in the context of ESG regulation.

Detailed Summary

The increased finding rates indicate intensified audit activity, but are primarily attributable to inspections of smaller audit firms, where the RAB has taken appropriate measures. This signals a differentiated supervisory strategy that specifically addresses risks among less established actors.

A key focus is digitalization: The five largest state-supervised audit firms have expanded their equipment with automated tools and techniques (ATT) and artificial intelligence by 39 percent over three years. The RAB actively monitors this trend and simultaneously tracks private equity investments in audit firms with a newly introduced reporting requirement. The organizational consolidation of the former Financial Audit and Regulatory Audit divisions aims at efficiency gains and more effective supervisory objectives. The new Memorandum of Understanding with FINMA dated December 10, 2025, replaces the 2015 correspondence and clarifies information exchange regarding risk-exposed financial institutions and crisis management.

Key Messages

  • RAB records slight increase in findings; focus is on smaller audit firms
  • Automation and AI deployment in large audit firms is increasing significantly (39% over three years)
  • New reporting requirement for private equity investments in audit firms introduced
  • RAB receives expanded competencies in sustainability audit (ESG) and due diligence control
  • Reorganized supervisory structure effective January 1, 2026, is intended to increase efficiency

Critical Questions

  1. Data Quality: What factors explain the increase in findings from 0.6 to 0.8 per mandate – stricter audit standards or actually higher quality deficiencies in audits?

  2. Conflicts of Interest: How does the RAB ensure that the new reporting requirement for private equity investments does not lead to circumvention structures, and what sanctions are provided for non-reporting?

  3. Causality: To what extent is the reduction in licensed firms (1,670 vs. 1,738) actually attributable to the renewal wave of limited licenses, and not to market consolidation?

  4. Feasibility: Does the RAB have sufficient resources to effectively exercise its new duties as supervisory authority for sustainability auditors alongside existing competencies?

  5. Technology Risks: How does the RAB itself examine the reliability and bias-freedom of AI tools deployed by audit firms (39% expansion)?

  6. Information Exchange: What concrete improvements does the new MoU with FINMA bring compared to the 2015 correspondence, particularly in cross-border crisis cases?

Source Directory

Primary Source: Business Report 2025 of the Audit Oversight Authority (RAB) – https://rab-asr.ch/de/geschaeftsberichte

Verification Status: ✓ 15.04.2026

This text was created with the assistance of an AI model. Editorial responsibility: clarus.news | Fact-check: 15.04.2026