Audits and financial statement reviews
An audit of a company’s or a capital group’s financial statements consists of procedures carried out by an independent statutory auditor in order to express an opinion in the form of an audit report. During this process, the auditor verifies financial statements and ensures that neither the statements nor the accounting records on which they are based contain material misstatements. The auditor also verifies that financial statements were prepared in accordance with applicable legal regulations and the company’s articles of association or bylaws. The purpose of the audit is to enhance the users’ confidence in the financial statements’ accuracy.
Our team of auditors delivers high-quality audits and reviews of financial statements, ensuring efficient completion and open communication with the client.
We conduct audits of financial statements prepared according to:
—The Polish Accounting Act
—International Financial Reporting Standards
The Audit Process
Review of Financial Statements
A review of financial statements primarily involves apprehending how the statements were prepared. As a result of this process, the auditor cannot obtain reasonable assurance that the statements are free from material misstatements. This means that a review provides a lower level of assurance to the users of the financial statements than an audit. Reviews most often concern quarterly, semi-annual, or interim financial statements issued as of a different date than the balance sheet date. The review aims to determine whether there is any evidence indicating that the financial statements have not been prepared in accordance with the applicable accounting regulations.
Frequently Asked Questions
The planning stage is when the statutory auditor becomes familiar with the company, its structure, internal processes, accounting system, and financial situation. On this basis, the auditor identifies risk areas and develops an audit plan tailored to the business entity’s specific nature, ensuring the audit is conducted efficiently and reliably.
Preliminary audit is conducted before the accounting books are closed. The auditor analyses substantial events that occurred during the year, verifies their recording in the accounting books, and identifies areas requiring particular attention at year-end. At this stage, the auditor also assesses the effectiveness of internal controls and the compliance of the adopted accounting principles with applicable regulations.
The substantive audit is carried out after the accounting books for the given year have been closed. It includes a detailed analysis of the financial statements in accordance with national and international auditing standards. The auditor’s assessment includes, but is not limited to: the accuracy of asset and liability valuations, the financial results, tax settlements, and the completeness of the notes and the management report.
After completing the substantive audit, the statutory auditor reviews all documentation and audit findings. An independent quality control of the rendered auditing services is also carried out. Finally, the client receives a summary of the results and a draft of the audit report for review before issuance.
An audit report is an official document summarising the entire process of auditing a company’s or a capital group’s financial statements. It provides an assessment of whether the financial statements have been prepared in accordance with applicable regulations and whether they present the company’s financial position accurately. In some cases, the report may also include a letter to the management board with additional comments and recommendations.