Summary seminar IRE

AUDIT – THE PROFESSION –
IBR/IRE
WHAT IS A REGISTERED AUDITOR?
Assignments for an auditor

 Statutory audit (daily work)
 Legal assignments: assignments given by the law, give all the shareholders the right information
 Contractual assignments
 Works council: smallest part, but important; informing shareholders about the figures, obligated when
> 100 VTE’s

Statutory auditor: objective

 Financial statements
 Goal: reasonable assurance materiality
 Stakeholders

Mandatory appointment of statutory auditor when exceed 2 of 3 criteria

 Balance sheet total > 4 500 000 EUR
 Turnover > 9 000 000 EUR
 50 employees

Legal assignments

See information given by board of directors, that these are reliable
Shareholders want to make decisions based on correct information
Be critical to the information you receive
 Contribution in kind
 Change of legal form
 Liquidity test
 Dissolution
 Mergers and divisions
 Issuance of shares

Contractual assignments

 Due diligence investigation (analysis of financial information – acquisitions / investments)
o Often for mergers
 Restructuring
 Forensic expert appraisal
 ESG reporting (Environment – Social – Governance)
o Quite recently, a lot of greenwashing today
 Assessment of internal control and administrative organization
 Contract for the performance of agreed upon procedures

Stakeholders

 Audit clients  Shareholders
 Banks  Financial analysts
 Suppliers  …
 Investors