Auditing of annual financial statements

OUR SERVICES FOR YOU: 

• Statutory audits of annual financial statements
• Voluntary audits of annual financial statements
• Group audits
• Audits of IFRS statements

THE ADVANTAGES FOR YOU:

• A uniform auditing process allows the annual audit to be carried out efficiently and on a practical basis
• Explanation of the balance sheet structure in the personal year-end meeting 

In accordance with the regulations laid down in Section 316 Para. 2 of the German Commercial Code (HGB), consolidated financial statements and management reports that public limited corporations have to prepare to comply with Section 290 of the German Commercial Code (HGB) or by other corporations in accordance with Section 11 in conjunction with Section 14 of the German Public Disclosure Act (PublG), are to be verified by an auditor. Consolidated financial statements and management reports prepared voluntarily are then to be audited if they are intended to have an exempting effect in relation to subordinated parent companies.

Particular points of focus for the group audit are the verification of the scope of consolidation, the correctness and correct adoption of the individual financial statements for corporations to be included in the consolidated financial statements and the verification of the adjustments necessitated by the consolidation.

The scope of consolidation is determined in accordance with Sections 290 et seq. of the German Commercial Code (HGB) or Section 11 of the German Public Disclosure Act (PublG). An audit of consolidated financial statements must therefore examine their compliance with the regulations and therefore in relation to the scope of consolidation determine whether all of the corporations to included in the consolidated financial statements have actually and correctly been included.

In accordance with Section 317 Para. 3 clause 1 of the German Commercial Code (HGB), the group auditor must also examine the individual financial statements included in the consolidated financial statements (commercial financial statement I). However, this audit can be dispensed with if the annual financial statements of the subsidiaries have been audited in accordance with Sections 316-324 of the German Commercial Code (HGB).

Correct adoption of the individual financial statements in the consolidated financial statements also includes verifying that the group-wide accounting and valuation systems are uniform and therefore auditing of the commercial financial statement II or supplementary statement (Sections 300 Para. 2 and 308 of the German Commercial Code (HGB)) prepared for this purpose.

Auditing of the adjustments necessitated by the consolidation represents a major component of the group audit. In particular, this includes the consolidation of capital (Sections § 301, 302 of the German Commercial Code (HGB)), the consolidation of debts (Section 303 HGB), the treatment of the interim results (Section 304 HGB), the consolidation of income and expenses (§ 305 HGB) and the tax accrual and deferral (Section 306 HGB).

The detailed findings of the audit are documented in a group audit report and in a condensed format in an auditors’ report.

- Sections 290-315 of the German Commercial Code (HGB) - consolidated financial statements and group management report
- Section 316 et seq. HGB - audit
- Sections 11, 14 German Public Disclosure Act (PublG).