Nowadays, even for small and medium-sized enterprises, there is a secure, process outline to be followed when implementing both voluntary and mandatory audits. This procedure is described as a risk-oriented audit approach. This provides the company with the certainty that the annual financial statement has been checked to ensure that there are no significant errors and that the net assets, financial, and earnings position is accurately conveyed. Particularly with regard to a company’s duty to openly disclose its annual and consolidated financial statements, this security aspect is essential since companies wish to portray themselves as reliable and honest business partners.
Before any analytical verification of evidence is carried out, the auditor first assesses the internal processes and quality checks put in place by the company to implement company policies quickly and correctly. Are there any weaknesses here? Is there anything lacking which may have implications on the annual financial statements? Has all data processing, such as procurement and sales, been correctly carried out? Does the interface between the enterprise resource planning system and the bookkeeping system function properly? Whilst carrying out the processes, interviews, and function audits, the auditor helps the company’s management or supervisory/advisory board to effectively implement company policies. Due to their thorough training, their auditing skills, and experience – and above all due to their personal and economic independence – our auditors make reliable, critical, and sometimes even uncomfortable partners for corporate management and stakeholders. Particularly within companies whose management structure is such that their employees do not feel comfortable expressing critical opinions, it can be very constructive and helpful when the auditor asks uncomfortable questions, probes more deeply for information and challenges opinions.
Such a thorough analysis by the auditor is particularly helpful to companies since the ultimate benchmark for economic success is a sustainable market position rather than simply subjective, unfounded expectations. All successfully processed audits conclude with the issuing of an unqualified audit certificate and a detailed audit report. The annual or consolidated financial statements can then serve as an important marketing tool for companies when presenting the success of the company figures for the previous financial year to banks, third parties, or potential investors.