ATF Audit

A financial statement review has a narrower scope than an audit. It primarily relies on comparative analyses, ratio analyses, and inquiries directed to the Client. A financial statement audit is significantly more detailed. It includes data reliability tests, verification of source documents, and assessment of internal processes and controls. Consequently, an audit provides a higher level of assurance regarding the reliability of the financial statement than a review.

The obligation to conduct an audit arises from the provisions of the Accounting Act and applies to entities that meet specific criteria (including revenue level, balance sheet total, and number of employees). Regardless of the legal obligation, some companies decide to undergo a voluntary audit, for example, before obtaining financing, bringing in an investor, changing ownership structure, or planning an M&A transaction.

The duration of the audit typically ranges from a few to a dozen weeks. It depends on the scale of operations, the number of units in the group, the complexity of operations, and the quality and availability of documentation. At the beginning of the engagement, a detailed schedule is established so that audit work is coordinated with the year-end closing process and other duties of the finance department. The audit process is usually divided into two stages: preliminary audit conducted before the end of the financial year and the main audit carried out after the financial statements have been prepared.

Basically, these include: accounting policy, accounting records, including trial balances, fixed asset registers, key commercial and financial agreements, personnel and payroll data, and the draft financial statements. Depending on the specific nature of the business, the auditor may request additional documents (e.g., loan agreements, grant documentation, consolidation packages). The scope of materials is determined during the audit planning stage.

A family foundation audit involves assessing whether the foundation operates in accordance with the law, its articles of association, and the founder's will – particularly in areas of asset management, incurring and fulfilling obligations, and public law settlements. This includes analyzing accounting records, tax documentation, resolutions of governing bodies, benefits for beneficiaries, and the manner in which the foundation's objectives are achieved. The goal is to confirm that family assets are properly protected and managed.

The Act provides for periodic audits of family foundations (at least once every four years), and in some cases more frequently, depending on the scale of operations and asset value. Regardless, many founders and boards decide on more frequent or thematic audits (e.g., of selected areas of activity) to maintain ongoing control over the achievement of statutory objectives and asset security.

Assurance and advisory services involve an independent verification of selected information, processes, or assets, such as merger and transformation plans, fulfillment of financing agreement conditions, consolidation packages, or trademark valuations. The outcome is an auditor's opinion confirming the accuracy, compliance, and reliability of the data, which can subsequently be used with banks, investors, administrative bodies, or internally by management.

Yes. One of the objectives of a financial statement audit is to identify risk areas, including accounting errors, improper transaction recording, weaknesses in the internal control system, or inefficient document flow. In the audit report, the auditor also presents recommendations for improvements, which help to streamline financial processes and reduce the risk of similar problems occurring in the future.

The first step is contact and a brief discussion of needs – the type of service (research, review, foundation audit, assurance services), the scale of operations, and deadline expectations. Based on this, a cooperation proposal and preliminary schedule are prepared. After signing the agreement, the ATF Audit team begins the work planning phase, communicating the scope of required data and subsequent stages of the process on an ongoing basis.