Secure the success of your French subsidiary with statutory auditor

Managing a French subsidiary involves much more than identifying business opportunities. It demands full compliance with a complex regulatory environment. Navigating these obligations without local expertise can expose even the strongest organizations to operational and financial risks.

Thanks to Vachon, securing a reliable and compliant statutory auditor French subsidiary relationship becomes a real lever for performance. Our firm offers more than statutory audit services: it provides tailored solutions that combine regulatory requirements with your group's financial strategy.

Why French subsidiaries must rely on specialist support

Operating a company in France requires meeting obligations linked to financial statement in France compliance, which have been significantly impacted by recent reforms, notably the PACTE law and new sustainability requirements. However, compliance should not be seen only as a constraint.

Working with an audit accounting firm in France like Vachon brings important strategic benefits :

• access to financial information that is reliable and ready for group consolidation;

• better control over tax, accounting, and regulatory risks;

• reinforcement of the subsidiary’s credibility with investors, banks, and stakeholders;

• anticipation of regulatory developments, including sustainability disclosures.

Choosing the right audit partner therefore creates value far beyond the simple fulfilment of legal obligations.

The regulatory framework governing financial statement in France compliance

Payroll french subsidiary must comply with a demanding statutory audit regime. An audit becomes mandatory when the subsidiary exceeds at least two of the following thresholds :

• an annual turnover greater than 8 million euros;

• a balance sheet total of more than 4 million euros;

• a workforce of at least 50 employees.

Group structures introduce additional complexity. When subsidiaries are controlled entities, they may be subject to lower thresholds: 4 million euros in turnover, 2 million euros in balance sheet, and 25 employees.

New regulatory developments must also be considered :

• discontinuation of the guichet unique for business formalities from 31 December 2024;

• creation of new courts specialized in economic activities from January 2025;

• mandatory publication of sustainability information for the 2024 financial year, with a limited assurance audit required.

A clear understanding of these requirements is essential to avoid financial and legal risks.

The main challenges linked to financial statement in France compliance

The preparation and certification of financial statement in France are particularly demanding for subsidiaries of international groups.

Reconciling different accounting frameworks

Subsidiaries must comply with local accounting rules (Plan Comptable Général) while producing data that meet the standards of their parent company, such as IFRS, UK GAAP, or US GAAP. A deep technical knowledge of both systems is necessary to ensure coherence and avoid delays in consolidation.

Ensuring consolidation readiness

Foreign groups rely on subsidiaries to produce high-quality, audit-ready financial information. Meeting consolidation needs requires a dual mastery of local and international reporting standards.

Managing regulatory risks across borders

French subsidiaries face a dense regulatory environment, including :

• corporate tax and VAT obligations;

• mandatory transfer pricing documentation;

• preparation of the Fichier des Écritures Comptables (FEC);

• sustainability reporting compliance under the CSRD framework.

Each of these obligations demands specialized know-how.

How Vachon supports statutory auditor French subsidiary compliance

Vachon offers a full range of statutory audit and advisory services specifically adapted to the needs of French subsidiaries belonging to international groups.

Statutory audit and financial statement certification

Our audit services guarantee that your French subsidiary's accounts present a true and fair view while complying fully with local law. Our audit methodology includes:

• a complete analysis of the regularity and reliability of financial data;

• identification of risk areas and evaluation of internal controls;

• verification of compliance with French accounting standards;

• delivery of bilingual reports adapted to group consolidation processes.

Execution with attention to detail

During the audit execution phase, Vachon applies a rigorous and structured methodology to guarantee the reliability of your statutory auditor French subsidiary process while ensuring full regulatory compliance. Each audit engagement is conducted with a high level of precision, based on a proven sequence of actions.

Our execution process involves:

• A meticulous review of the subsidiary's internal control systems: our auditors assess the design and effectiveness of key internal controls to identify any weaknesses that could affect the accuracy of financial information. We also verify that processes comply with applicable accounting principles and regulatory obligations;

• Detailed substantive testing of financial transactions: we select representative samples across all key accounts and transaction types to perform substantive verification. This allows us to validate the existence, accuracy, valuation, and completeness of revenues, expenses, assets, and liabilities. Special attention is paid to complex areas such as revenue recognition, intercompany transactions, and provisions;

• An evaluation of accounting policies and critical estimates: our teams analyze the accounting methods adopted by your subsidiary to ensure consistency with both French GAAP and, if necessary, the group’s reporting standards. Particular scrutiny is given to management estimates such as impairment tests, deferred tax calculations, and provision assessments, which could materially impact the financial statements;

• A systematic verification of regulatory compliance: every financial cycle is examined not only from an accounting standpoint but also from a regulatory perspective. We ensure that statutory obligations regarding tax, labor law reporting, VAT compliance, and corporate governance disclosures are fully respected, thus avoiding future administrative disputes;

• A focused analysis of the risks specific to group reporting: when the subsidiary is integrated into a broader group structure, we align our audit work with group consolidation requirements. We ensure that reporting packages are accurate, deadlines are met, and that the subsidiary’s financial data fit seamlessly into the parent company's financial statements without reconciliation issues;

• Proactive communication throughout the audit process: regular checkpoints are organized with the subsidiary’s finance team and, if applicable, with the parent company’s auditors. These meetings allow early identification of potential issues, transparent resolution of any discrepancies, and better anticipation of reporting expectations.

At Vachon, attention to detail does not mean simply detecting anomalies. It means offering a structured, anticipatory audit that strengthens the financial reliability of your French operations while supporting the overall group reporting strategy.