Services
An efficient and targeted audit is based on a thorough understanding of the business environment and value chain of a company. A company’s opportunities and risks affect the accounting process. Thus, the auditing is no longer just ticking off numbers, but an intense engagement with the company itself, its activities and the control elements to be audited. We understand that the assessment of figures of previous periods serve much more to estimate the future development, than justifying or confirming the past.
Audit of consolidated financial statements HGB/IAS/IFRS
Auditing the annual financial statements is the classic activity of auditing. We analyze and assess the economic and legal environment, the business risks, the internal control systems and the risk management in order to bring an efficient and tailored made strategy. Our audit findings are translated into understandable and meaningful reports that are suited to the needs of each one our clients.
Having all the knowledge of your company and the accounting systems used, we are at your disposal all year round to show the financial consequences of corporate decisions and, above all, to make you aware of design alternatives as you need them.
Reporting Packages Support
International borders do not mean a stop to Entrepreneurial activities.
Despite years of effort by the standard setters, national accounting standards are still different. The tax jurisdictions of the respective countries and their influence on national accounting contribute to this. International companies face a challenge to prepare and reliably maintain the figures for all units, independently of the national location of the legal group company, so data is included uniformly in the parent company’s financial statements.
With our knowledge on the differences in accounting systems and processes related to preparing annual financial statements, we can either offer assistance with creating the packages or, if the preparation is performed by you, audit services on the accuracy of the packages according to experience and the requirements of the parent company and the Group (“audit instructions”).
Tax Reporting
However, due to the complexity of national and international tax law, many corporations have developed into a weighty and often independent subarea that can no longer be processed without profound tax know-how.
In terms of content, the question arises as to whether accounting differences between the accounting in the Group and the accounting in the tax balance sheet and how it will offset each other in the future and with which tax payments this will occur. The differences are posted to deferred taxes taking into account future tax rates. Furthermore, the requirements of Group reporting require extensive disclosures; For example, a reconciliation must be made from the consolidated net income to tax expense, or the Group tax rate must be determined. With multiple group companies and the influence of different national tax systems and currency conversions, this can be a challenging task.
Business / corporate job evaluation
Occasions that make a company valuation necessary occur to varying degrees. While the classic cases are necessary for a purchase or sale of a company or parts of it, a determination of value may also be necessary in case of severance payments of outgoing shareholders, proof of value in corporate restructuring or even for family law reasons such as an increase in profit or compulsory portion claims. Of practical relevance are valuations that are necessary for tax reasons, for example, when companies are inherited or hidden reserves have to be uncovered.
The auditor’s services may relate to an objective determination of value, but may also be directed to carrying out subjective valuations as basis for decision-making process.
The professional requirements for an objectified company valuation are bindingly regulated in standards of the Institute for Auditors (IDW). It is necessary to derive the value using the discounted earnings method or the discounted cash flow method. Both variants require detailed income and liquidity planning in order to determine a present value from the surpluses.
In many cases, there is a need for a simplified approach to gain clues about the range of valuations.