Companies audit in Czech Republic

In what cases may you need an audit of the company? - If you planning to:

Get a bank loan

Minimize tax risks

Prepare the company for certification

Check the accounting status and its reliability when changing the accountant or financial director

Get access to participate in tenders

Reorganize a business, buy or sell a company

Attract investors or satisfy the interest of partners

The audit procedure can be divided into three stages

First stage is preparation for the audit, which includes:

1 - identification of the audited company's business activities

2 - examination company's nature of the industry, financial health, organization of internal control and automation level of accounting processes

3 - familiarization with materials about financial obligations of the client and legal proceedings (in the presence)

4 - estimating the amount and labor intensity of work

After that, the parties conclude a contract for the provision of audit services. Next, the overall audit strategy is determined and a plan for the upcoming work is drawn up. Also forming the audit schedule, the audit team, the scope and timing of the planned audit procedures.

Second stage involves directly conducting an audit, during which data is collected, analyzed, and evaluated. This process includes procedures such as:

1 - recalculation - allows you to evaluate correctness of arithmetic calculations in accounting

2 - inventory - gives a clear picture of the actual availability of the company's property

3 - checking the methodology of accounting and documentation - allows you to determine the order and correctness of the work performed by the accounting department

4 - revision of documents - allows you to verify the authenticity of the performed operations

5 - analytical procedures - verification and comparison of financial information with data from previous periods

Third stage is the final one. Based on the studied data, the specialist makes a report indicating violations and all necessary actions to correct them, and forms the auditor's report about validity of financial statements.

The information obtained after the audit will help you to form a correct opinion about the company's performance and make further decisions about the ways of its development.