Statutory audit
Statutory audit is designed for clients whose duty of final accounts check-up is follows from the law and also for clients who voluntarily choose this way of audit aiming to gain an independent view of state of their finances. The position of an auditor and basic principles of statutory audit are provided in Act No.524/1992 Coll., On Auditors and the Chamber of Auditors of the Czech Republic as amended.
We start cooperation with a client during the audited period. The audit is usually divided into two parts (with large companies into more parts):
- pre-audit aimed mostly at verification of client´s inner checking system including examination of specific accounting and tax operations. This usually takes place in the second half of fiscal period. The result is so called „Pre-Audit Report“ which has a form of statement and recommendation so that potential inadequacies can be withdrawn before the fiskal period closes.
- final audit and final examination of accounts, i.e. of the balance sheet, profit and loss statement and balance accounts supplements. In the case of obligatory audit there also belongs the client´s annual report verification. The result is ´Auditor´s Report on Examination of Final Accounts´which contains the auditor´s statement. Besides this the client is notified of all relevant matters found during verification, including corresponding recommendations in the form of ´The Letter of Accounting Entity Administration´. This letter is an internal document intended for client´s needs only.
All relevant matters and complicated problems are solved by expert advisory board of our company. All observations to the final accounts are consulted with responsible workers of the company as well as the steps leading to their elimination. Our motto is ´It is not sufficient to say something is wrong, but also to say why it is wrong, what consequences there could be and what to do and how to do it so that it would not be wrong anymore.´
The examination is carried out by a working team led by the auditor responsible for communication with the client and for auditing tasks administration. The number of team workers depends on complexity of the task, the size of audited company and expected extent of work.
The price of statutory audit is set individually according to agreement with the client.The price reflects estimated period of time needed for carrying out the audit and takes into account the extent of assessment of the individual client´s final accounts.We prefer to set fair prices and that is why we never start from indices that cannot cover the extent of work (e.g. the company´s turnover) and that could handicap the successful companies. Our remuneration ranges cca 12.000 CZK per day spent at the client´s company for a two-member auditing team. This price includes also an audit preparation (e.g. study of subject indicators, etc.),getting external information (verification letters, etc.) report setup and auditor´s record and consultation with the client. The price of audit includes providing consultations during final accounts setup and also common account and tax consulting. In the range of the contract we provide consulting on the phone and by e-mail claimless for any other fee.
