Audit of family foundations

Independent verification of the foundation's operation in accordance with the act and statute

Family foundations are required, at least once every four years, to conduct an audit of asset management, incurrence and fulfillment of liabilities, and public legal obligations to assess their correctness, reliability, and compliance with the law, purpose, and its documentation.

Do you want to ensure that your family foundation operates not only within the letter of the law but also achieves its intended goals? We will conduct a professional audit for you. We provide services both within the mandatory, statutory timeframe, and when you wish to verify the correct functioning of the foundation. Our experts will analyze in detail, among other things: the correctness of the accounting, the timeliness and completeness of tax obligations, and the compliance of the foundation's actions with the provisions of its statute and original intent. Thanks to the audit, you will gain peace of mind and the guarantee that your family assets are managed properly.

Basic support scope

Mandatory audit (every four years or more frequently depending on the size of financial reporting) ending with a report for management.

Voluntary audit of selected areas of the family foundation's operations.

For which foundations are our audit services intended?

For family foundations that wish to fulfill the statutory audit obligation or obtain an independent assessment of their operations in the areas of: asset management, legal compliance, tax obligations, and adherence to the charter.

The family foundation audit process at ATF Audit is designed to ensure complete transparency of operations, a clearly defined scope of work, and understandable conclusions and recommendations for the Management Board.

Step 1

Document analysis and scope determination

Review of the foundation's articles of association, regulations, and key documents.
Determination of areas subject to audit (mandatory / selected areas).
Work schedule preparation.

Step 2

Compliance and operational audit of the foundation

Analysis of asset management processes.
Verification of public law liabilities and settlements.
Assessment of accounting and financial documentation.
Verification of compliance with the provisions of the statute.

Step 3

Report and Recommendations for the Board of Directors

Preparation of a family foundation audit report.
Identification of risk areas and recommendations for improvement.
Support with the implementation of corrective actions.

With us, you'll gain the assurance that family assets are managed responsibly and in accordance with the law.

FAQ

We understand that the decision to audit financial statements, audit a family foundation, or verify selected financial processes involves many questions.

What does a financial statement audit entail?

A financial statement audit is an independent assessment of whether the statement presents a true and fair view of the financial position and performance in accordance with the Accounting Act or other standards (e.g., IFRS). It includes an analysis of accounting records, audit tests on documents, an evaluation of accounting policies, the internal control system, and key risk areas. The result is an auditor's report which contains the auditor's opinion on the financial statements. The auditor's opinion is of significant importance to owners, investors, financing institutions, and other stakeholders.

What is the difference between an audit and a financial statement review?

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.

When is it mandatory to audit a financial statement?

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.

How long does an audit of financial statements take, and what does it depend on?

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.

What materials does the ATF Audit need to begin an investigation?

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.

What does a family foundation audit involve?

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.

Is an audit of a family foundation always mandatory?

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.

What are assurance and advisory services at ATF Audit?

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.

Can irregularities in accounting and financial processes be identified during an audit?

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.

How to start cooperating with ATF Audit?

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.