Auditing: What Can an Auditor Do for Your Business?

At Trimborn . Partner, we have been working closely with the independent auditing firm Rhein-Ruhr Consult GmbH for many years. In this article, we would like to explain what is possible within the scope of an audit and how your company can benefit from our auditors. Most business owners understand the basic meaning of the term “audit.” However, when it comes to the specific areas of auditing, there are often gaps in knowledge. That is why we have prepared the following overview of auditing for you.

What is an audit?

Auditing is fundamentally about reviewing a company’s financial reporting. In doing so, applicable accounting standards are always observed and incorporated into the review. The auditor performs various tasks in this process. The primary task of an auditor is to compare financial reports or accounting records—in accordance with accounting regulations—with the actual presentation of the company’s financial position, financial performance, and cash flows, and to identify any discrepancies. It is important that an auditor always remain impartial. Auditing can be conducted as a statutory or voluntary audit. At this point, financial statement audits, special audits, and voluntary audits are among the primary tasks. In addition, however, auditors can also perform other audit-related services. These include valuations, transaction advisory services, and fiduciary activities. Below, we will discuss the individual tasks and possibilities of auditing.

The Financial Statement Audit – Statutory Audits and Voluntary Audits

When we speak of a financial statement audit, we are referring to a certified public accountant reviewing the annual financial statements at the end of the fiscal year. A financial statement audit may be commissioned on a voluntary basis. This is always possible when the law does not require it. There is no audit requirement for small corporations, certain partnerships, and companies with other legal forms. However, there are also companies that are subject to audit requirements under Sections 316 et seq. of the German Commercial Code (HGB). In general, it can be said that a financial statement audit involves a comprehensive examination of the proper accounting practices. Especially in the case of mandatory audits, legal requirements must be strictly adhered to. The financial statement audit is arguably one of the main tasks of certified public accountants. At Trimborn . Partner, we have been working closely in the area of financial statement audits for many years with the independent firm Rhein-Ruhr Consult GmbH Wirtschaftsprüfungsgesellschaft.

Special Audits for Specific Occasions

Auditing is not only relevant for the annual financial statements. The law stipulates numerous other audits to ensure the protection of trust and creditors. Depending on the circumstances, business owners therefore need an auditor to conduct a special audit. It is always important to determine which special audits are relevant or mandatory for your company. For a comprehensive overview, you should consult with a certified public accountant. We have compiled an illustrative overview of special audits below:

• Audits pursuant to the Real Estate Brokerage and Property Development Regulations (MaBV) and the Financial Investment Brokerage Regulations (FinVerV)
• Incorporation and capital contribution audits for corporations
• Formation audits (Section 33 AktG, Section 57e GmbHG)
• Energy sector audits (EEG, KWKG, etc.)
• Audits under the Transformation Act (change of legal form, spin-off, demerger)
• Audits in accordance with the Packaging Act (VerpackG) / business audits of the declaration of completeness pursuant to § 11 VerpackG

Business Valuation by Experts

There are various situations where the value of a company must be assessed as realistically as possible. Company valuations are frequently conducted during the acquisition or sale of company shares or in the context of corporate mergers. A reliable and standardized company valuation can be commissioned from a certified public accountant.

Support for transaction processes

A corporate transaction process is a complex and multifaceted process. To successfully navigate a transaction process, a team of tax advisors, auditors, and attorneys is necessary. At Trimborn . Partner, we provide you with this team under one roof. In the context of major corporate transactions, you can thus benefit from close collaboration among all parties. If you have a major transaction coming up, we would be happy to advise you in detail.

Fiduciary Services

In the context of fiduciary administration, the fiduciary, acting as an authorized representative, is assigned various administrative and supervisory duties. These fiduciary duties may be performed by a certified public accountant. At Trimborn . Partner, we also offer fiduciary services in collaboration with Rhein-Ruhr Consult GmbH Wirtschaftsprüfungsgesellschaft.

Auditing is versatile – Find out more now!

As you have learned in this article, auditing is very versatile. It is almost impossible to provide general information about what a specific company needs or how it could benefit. Therefore, it is important for business owners to contact an auditor and seek their advice. At Trimborn . Partners, we are pleased to offer comprehensive consulting services in a close-knit setting. With tax and legal consulting as well as auditing, you are in good hands with us and will receive sound advice on all your questions. As tax consultants in Düsseldorf, we have a large network of qualified advisors and have been gaining experience with clients from a wide range of industries for decades.

Have we piqued your interest? Contact us to schedule a consultation. With our offices in Düsseldorf and Oberhausen, we are the ideal partner in your area. We look forward to hearing from you.