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What type of companies are subject to statutory audits?
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Medium-sized and large corporate enterprises are subject to statutory audits. Corporate enterprises no longer count as small if two of the following criteria are met:
- Total assets in excess of 4,840,000 euros
- Turnover ist greater than 9,680,000 euros
- More than 50 employees
If a bank so wishes, an audit can be carried out regardless of these guideline values.
Category: H.P.O. Wirtschaftsprüfer -
What is audited?
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The audit shows what the internal control system (ICS) of a company is like. Is the enterprise well organised, and does it manage its operations with care, or is there reason for concern? Using random inspections the auditor obtains a comprehensive impression of the reliability of the ICS, and thus also the correctness of the accounts and the annual financial statements.
Category: H.P.O. Wirtschaftsprüfer -
What can an audit result in?
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The auditor has a purely advisory and supervisory function. He himself does not do any accounting and can consequently only make recommendations for corrections.
If the audit leads to an overall positive impression the auditor issues an audit certificate. If there are any doubts this is issued with the additional comment “qualified”. If there is overwhelming doubt about the correctness of the figures the company has provided, the worst case scenario is that the audit certificate is denied.
Category: H.P.O. Wirtschaftsprüfer -
For who are the results of an audit relevant?
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The results of an audit affect the client himself, especially the management and the board, which has a supervisory function, and is thus dependent on this basis for decision-making. The general public also has a great interest in being informed about the trustworthiness and reliability of an enterprise.
Category: H.P.O. Wirtschaftsprüfer -
Who appoints the auditor?
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The auditor for the annual report is selected by the board, though in the case of special audits it is the court that chooses the auditor from the proposed names.
Category: H.P.O. Wirtschaftsprüfer -
What is a fraud audit?
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A fraud audit is carried out when there is reasonable suspicion. The books are examined to find evidence and the person guilty of irregularities.
Category: H.P.O. Wirtschaftsprüfer -
What is a capital increase audit?
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A capital increase audit is necessary so that an independent party can verify the value of the increase.
Category: H.P.O. Wirtschaftsprüfer -
Who controls the auditors?
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Every six years there is a so-called peer review, a check by the chamber of auditors. This is carried out using random sampling. The worst case scenario is that the auditor is barred from working as an auditor.
Category: H.P.O. Wirtschaftsprüfer -
When may an auditor not be involved?
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Reasons why an auditor may not be involved are family or personal associations with the company to be audited, or if the auditor has shares in the company to be audited.
The work of the auditor is also associated with a large degree of personal responsibility. It is thus a question of conscience as to whether it is appropriate to accept the job, for example with regard to the required professional knowledge.
Category: H.P.O. Wirtschaftsprüfer -
What distinguishes an auditor?
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According to § 43 of the Public Accountant Act, the general professional duties of an auditor include: independence, conscientiousness, discretion, personal responsibility and impartiality. Activities that are incompatible with the profession are to be refrained from. The auditor must also show that he is trustworthy and respectable outside of his work. An auditor is also duty bound to continue his training to keep up to date with legal and professional developments.
Category: H.P.O. Wirtschaftsprüfer
