Audits of Annual and Consolidated Financial Statements

For us, conducting statutory and voluntary audits of annual and consolidated financial statements entails more than simply fulfilling a duty. We always regard auditing also as an opportunity to advise and support our clients as they seek to identify risks and harness the potential for improving all accounting and tax-related business processes.

Whether the audit is voluntary or statutory, our work focuses on making a sound judgment of the regularity of the accounting practices you apply when preparing financial statements in compliance with the German Commercial Code, IFRS or US GAAP. In numerous cases with international implications we cooperate with partner firms belonging to Praxity, the global alliance of auditors.

When auditing consolidated financial statements we offer you both uniform reporting and a globally aligned audit strategy complying with the International Standards on Auditing. We generally work alongside your internal accounting team to prepare the annual or consolidated financial statements in compliance with the relevant national and international accounting principles.

When consolidated financial statements are being prepared for the first time, we assist you in many ways – typically with installing the necessary group reporting practices, measuring assets and liabilities for first-time consolidation, and introducing a uniform group accounting directive.

Audits of Publicly Owned Enterprises

If a regional or local authority (federal government, state or municipality) holds a majority interest in a private enterprise, at the request of the relevant authority pursuant to Sec. 53 of the German Budgetary Principles Act the audit encompasses not only the annual financial statements, but also a review to establish whether the business has been conducted in a proper and orderly manner and an assessment of the economic circumstances of the enterprise. The same applies to the audit of local public enterprises and institutions according to state law.

We provide comprehensive advice, paying due regard to the relevant budgetary regulations, the commercial provisions of local constitutional law, and any provisions of company bylaws that impose an obligation to have financial statements audited.

Audits Pursuant to the German Real Estate Agent and Property Developer Act

We also specialize in performing audits according to the German Real Estate Agent and Property Developer Act. Section 34c of the German Industrial Code provides for a licensing obligation to ensure the reliability of certain persons carrying on a trade. The actual requirements are specified in the Real Estate Agent and Property Developer Act. We enable persons carrying on the trade of property developer or construction manager pursuant to Sec. 34c(1) no. 3 of the Industrial Code to verify compliance with the provisions of this act by way of an annual audit.