Audit

We prefer close cooperation during the audit, where the client typically uploads their data to a shared data storage or directly to the audit software, or provides access to their accounting software. We use the flexible Inflo cloud audit system, which the client has access to during long-term cooperation, and which provides them with financial analyses and reports on the financial performance of the company or organisation. See below for a list of the clients we work with.

WHAT DO WE AUDIT? 

• Financial statements, including verification of annual reports prepared in accordance with Czech law or International Financial Reporting Standards (IFRS) – based on legal requirements or the client's voluntary decision.

• Consolidated financial statements prepared in accordance with Czech law or International Financial Reporting Standards (IFRS).
• Subsidies, grants, foundation contributions, donations according to the conditions and requirements of the providers – e.g. subsidies for social services exceeding CZK 3 million financed by the Ministry of Labour and Social Affairs through the regions, programmes within the International Visegrad Fund, programmes from the EEA and Norway Funds (e.g. Active Citizens Fund), programmes financed by the EU (e.g. Creative Media Sub-programme), programmes financed by the Ministry of Foreign Affairs of the Czech Republic (e.g. Transformation Cooperation Programme), programmes financed by the Ministry of Health of the Czech Republic (e.g. Equal Opportunities for Citizens with Disabilities), programmes financed by foundations (e.g. the ČEZ Foundation's Regional Support Programme).
• Economic or financial data as specified (agreed-upon procedures audit).
• Consolidation packages – reports for consolidation purposes in accordance with IFRS international regulations or national regulations (e.g. German HB II).

In addition to standard audits, we also perform reviews of the financial management of local government units or audits of the financial statements of contributory organisations for approval by the founding body's council, as well as more comprehensive due diligence audits, typically for acquisition purposes. 

HOW DO WE AUDIT FINANCIAL STATEMENTS?

1. Acceptance of the engagement, audit strategy and planning

Before commencing the audit, we will carry out the necessary assessments of the contract and coordinate the audit schedule with the client, agreeing on how and when the client will provide us with the data and information necessary to perform the audit. If we commence the audit before the end of the accounting period, the audit planning takes place during a so-called interim audit, during which we perform a financial analysis, map management and control processes and systems, and identify and assess risks. We then propose specific audit tests to respond to the identified risks.

2. Conducting the audit

If we also perform an interim audit, we primarily test costs and revenues and, in the auditor's letter to management, we comment on the findings from the assessment of management and control processes and systems and on the results of the tests performed. During the final audit, i.e. the audit after the end of the accounting period, we perform all other audit tests, including tests relating to the preparation of financial statements and disclosure, i.e. in particular what is stated in the notes to the financial statements. Any irregularities found are immediately discussed with the client and, if possible, a correction is agreed upon. 

3. Closing the audit

We discuss the results of the audit within the audit team and the responsible auditor reviews the audit performed. We prepare all the documentation necessary to conclude the audit. We then issue an auditor's report containing the auditor's opinion. We issue the report electronically with a guaranteed electronic signature (certificate); we only issue a paper report at the client's request. As soon as possible after the auditor's report is issued, we add any missing documentation to the auditor's file and close the file.