Audit

We prefer close collaboration during an audit, where the client typically uploads their data to a shared data store or directly into auditing software, or provides access to their accounting software. We use a flexible cloud-based auditing system called Inflo, to which the client has access for long-term cooperation; financial analyses and reports on the financial performance of the company or organisation are available in it.

View the types of clients we’ve worked with.

What do we audit? 

• Financial statements, including audited annual reports, prepared in accordance with Czech law or International Financial Reporting Standards (IFRS) – based on an obligation imposed by law or a voluntary decision by clients.
• Consolidated financial statements prepared in accordance with Czech law or International Financial Reporting Standards (IFRS).
• Amounts co-funded from public budgets or foundations, grants and donations, as per the conditions and requirements of the respective entity or institution – e.g. subsidies for social services that exceed 3 million CZK, funded by the Ministry of Labour and Social Affairs through the administrative regions, amounts funded by programmes under the International Visegrad Fund, the EEA and Norway Grants (e.g. Active Citizens Fund), the EU (e.g. Creative Media Sub-programme), the Ministry of Foreign Affairs of the Czech Republic (e.g. Transformation Cooperation Programme), the Ministry of Health of the Czech Republic (e.g. Equalising Opportunities for Citizens with Disabilities) and foundations (e.g. the CEZ Foundation’s Support for Regions Programme).
• Economic or financial data based on a job assignment (e.g. audits following an agreed procedure).
• Consolidation packages – reports for the purpose of consolidation according to international (IFRS) regulations or national regulations (e.g. HB II in Germany).

In addition to standard audits, we also perform reviews of management for territorial self-governing units, presentations of financial statements of co-funded organisations for the purposes of approval by a founder’s council, or rather complex due diligence audits typically for acquisition purposes. 

How do we audit financial statements?

1. Audit contract acceptance, strategy and planning

Before the audit commences, we perform all necessary assessments of the contract, fine tune the audit schedule with the client and discuss how and when the client intends to supply the data and information needed for the audit. If an audit starts prior to the end of a reporting period, the audit planning phase takes place during an interim audit stage comprising financial analysis, map management and control of processes and systems, in addition to identifying and assessing risks. We then design specific audit tests to respond to the risks identified.

2. Conducting an audit

If the assignment includes an interim audit, we chiefly focus on checking costs and revenues. In the executive report produced by the auditor for the organisation’s senior management, description is given of findings relating to assessment of management and control processes and systems and the results of the tests performed. For final audits, i.e. as carried out after the close of the financial year, we perform all other audit associated tests, including those relating to preparing reports and disclosure; the latter particularly involves facts to be disclosed in the notes of financial statements. Any irregularities found are immediately discussed with the client and, if possible, a corrective action is taken. 

3. Closing stage of the audit

The results of the audit are discussed within the audit team and the senior auditor reviews the completed audit. We prepare all documentation necessary for closing the audit, followed by issuing an auditor’s report containing the auditor’s opinion. We issue the report in an electronic version with a secured electronic signature (certificate); only upon request by the client is it made available in paper form. As soon as possible after issuance of the auditor's report, any missing documentation is added to the auditor’s file, which is then officially closed.