A financial audit identifies the financial matters of the company such as profitability and the use of funds created from profits, taking into account the books of accounts and available documentation. Thus, it evaluates the financial situation of the company by looking into the past. It is a legal obligation of the organization, performed either annually or at a fixed periodic period.
In accordance with § 19 par. 1 of the Accounting Act, these entities must have regular individual financial statements and extraordinary individual financial statements verified by an auditor:
- commercial company and cooperative, if at least 2 of the conditions are met as of the date on which the financial statements are drawn up and for the immediately preceding accounting period: the total amount of assets exceeded 4,000,000 euros, while the amount of assets means the amount of assets determined from the balance sheet in a valuation not adjusted for correction items, reserves and depreciation for long-term assets, net turnover exceeded 8,000,000 euros, the average recalculated number of employees in one accounting period exceeded 50.
For more information, please see: Audit criteria from 1 January 2022
- commercial company and cooperative, whose securities are accepted on the regulated market,
- company, which has this obligation established by a special regulation, for example the Banking Act,
- company, which prepares financial statements according to international standards for financial reporting (IFRS).
Together with other companies in the Crowe network, we also perform audits of consolidated financial statements, both at the component auditor level and at the group auditor level.
The consolidated financial statements are drawn up by the parent accounting unit. The parent accounting unit, which is required to draw up consolidated financial statements, prepares a consolidated annual report. The consolidated financial statements must be verified by an auditor.
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