Audit process

The audit objective is to strengthen user confidence of financial statements. The auditor’s opinion serves this purpose. The auditor expresses their opinion as to whether financial statements are, in all material respects, prepared in accordance with the applicable financial reporting framework. When issuing an opinion, the auditor should obtain reasonable assurances that the financial statements are free of material misstatement.

Audit planning

Detailed knowledge of the client’s business is paramount to our audit work. We always undertake to familiarise ourselves with the client´s internal business processes by studying internal guidelines and standards and through interviews with employees and management. We compare findings against our knowledge of processes of comparable businesses in that particular industry.

Our findings are subsequently compared to data presented in the financial statements. Based on this information, we are able identify the areas where we expect a risk of material misstatement. These areas are discussed with management and an effective audit strategy determined. We prepare a plan of audit procedures and set audit objectives.

Interim audit

Before evaluating control mechanisms, we always familiarise ourselves with the organisation’s control system and test its functionality. Based on the results of our tests, we determine appropriate audit procedures and plan the timing and scope of the final audit. Careful audit planning and detailed evaluation of interim audit findings enable us to detect any irregularities in time and assist us to maximise the speed and efficiency of the final audit.

Attendance at stock take

If inventories are a significant part of the business, we always attend the year-end stock take and assess its efficiency and design. In case of significant cash register balances, we also attend year-end cash counting.

Final audit

During the final audit, we test only selected audit objectives. We use substantive testing procedures, detailed testing or a combination of both. We evaluate risks, adequacy and relevance of obtained supporting evidence and, if necessary, carry out other tests. If we discover exceptions or contradictory evidence, we re-examine and eventually re-test these specific areas.

Audit completion and issue of Auditor's report

In the final phase of the audit, we perform a reconciliation of final outputs, i.e. financial statements and notes to the financial statements and, eventually, a consolidated package. We communicate our findings of the audit to management and shareholder representatives. Key topics are generally summarised in a written letter to management. Finally, we issue an auditor’s opinion.