Statutory audit
Statutory audit in the Czech Republic
Statutory audit is the one that is required by law. It generally consists of presenting the auditor's opinion on whether the financial statements comply with legal requirements and give as accurate as possible a picture of the assets, financial situation and incomes.
The current Czech law on auditors has been in force since March 2009. Furthermore, the audit guidelines issued by the Chamber of Auditors are in force. These guidelines are based on the International Standards on Auditing issued by IFAC, and are adapted to take into account the local environment and local regulations, in particular the Accounting Act and relevant Czech accounting regulations.
Audits in the Czech Republic are mandatory for:
- all banks and investment funds
- foundations and certain other non-profit organisations
- joint-stock companies which, both in the current and previous financial period, meet at least one of the following criteria:
- turnover exceeds CZK 80 million
- total assets exceed CZK 40 million
- average number of employees exceeds 50
- other accounting entities that meet at least two of the above criteria.
Statutory audit by Crowe Czech Republic
The purpose of the audit is to provide reasonable assurance in two areas:
- first, to ensure that the company's financial statements are properly prepared and reflect the company's real situation;
- second, the auditor ensures that the company has prepared its financial statements in accordance with the applicable regulations.
As part of the statutory audit, our experienced experts will examine information such as:
- bank balances,
- accounting records and
- financial transactions.
Generally, the audit also includes an analysis of areas other than the financial one, but it is the financial audit that involves reviewing various financial documents.
Why Crowe Czech Republic statutory audit?
The statutory audit is the service most frequently chosen by our clients. During the statutory audit, we conduct a risk analysis and risk assessment and, on the basis of these analyses, we draw up a financial audit strategy as well as we plan and assess the accounting and non-accounting information relevant for financial reporting purposes. Moreover, if necessary, we audit consolidated financial statements at both individual and group auditor level in cooperation with other firms in the Crowe Global network.
We start working with the client already during the period under examination. Most often, we start with a preliminary audit to verify and examine the specifics of client`s accounting and tax operations. The final product of our cooperation with the client is the final audit and final examination of the accounts, i.e. the balance sheet, profit and loss account and supplementary balance sheet books.
Moreover, as part of our audit services, we may also assist you in the preparation of:
- financial statements in accordance with Czech accounting standards, including the preparation of the annual report and the report on relations.
- financial statements in accordance with International Financial Reporting Standards
- consolidated financial statements
- consolidation package
- statement on proper bookkeeping (according to Czech accounting standards or IFRS)
