Audit of (consolidated) financial reports
The audit of (consolidated) financial statements is a voluntary or legally prescribed procedure for reviewing of financial statements with the main objective to issue an independent and objective Auditor's opinion on whether the financial statements are fair and objective in their significant aspects, and in accordance with the applicable financial reporting framework.
Audit is more than expense! By choosing recognized, high-quality and respected Auditors, you will increase the level of user confidence in your financial statements, and in the very process of audit of (consolidated) financial statements, Certified Auditors will examine the design and implementation of the internal control system and identify risks that threaten your business.
Audit review
Audit review or "small audit" is an audit procedure based on which, by applying simpler and faster audit procedures, a conclusion is expressed as to whether the Auditor (Practitioner) noticed that the financial statements were not prepared in accordance with the applicable financial reporting framework.
Although an audit review provides a slightly lower level of assurance than an audit of financial statements, it is still a high assurance engagement. Audit reviews are prescribed by law for non-for-profit organizations that in the previous reporting period generated revenues between HRK 3,000,000 and HRK 10,000,000. Either entrepreneurs or non-for-profit organizations can also voluntarily decide to conduct this procedure.
Audits in accordance with the Companies Act
The Companies Act prescribes many cases in which the engagement of a Certified Auditor is required to implement legal actions based on the decisions of Company members or at the request of the Commercial Court. For the entry or increase of the Company's share capital by entering capital in rights or things, respectively, nominal, or effective reduction of the share capital, a special report from an independent auditor is required, and for the increase of the share capital from reserves or retained earnings, the Companies Act requires the implementation of a "full" audit of the financial statements based on of which the decision is made to increase the share capital.
The Companies Act prescribes audits in cases of mergers, mergers, divisions, and other relevant statutory changes of Companies, which are carried out according to the Companies Act. The Auditor is appointed at the proposal of the members of the Company or, in specific circumstances, by the Commercial Court, and the main purpose of the audit engagement is to express the Auditor's assurance that all the actions taken are in accordance with the provisions of the Companies Act, respectively, that none of the investors, on the basis of the implemented legal action, is not impaired for the corresponding share of the share capital.
Agreed-upon procedures & due diligence
Agreed-upon procedures are an audit engagement in which the Auditor does not express an opinion or assurance about the performed audit work but presents the factual situation about the audit procedures. The International Standard for related services does not define the scope of the audit engagement, yet the scope of work depends entirely on the wishes and needs of the client, so the subject of scope can be revenues, expenses, tax calculation, payroll, reconciliation of analytics and gross balance, depreciation calculation, accounts receivable and obligation, etc.
The best-known engagement of agreed-upon procedures is due diligence, the subject of which is an in-depth examination of the entity's accounting, tax and legal records and reporting on the factual situation, and the scope of the engagement often includes the engagement of external experts like lawyers and Certified tax advisors. Due diligence is most often carried out in transactions of purchase and/or sale of companies, and as a prerequisite for concluding the final deal. Our experienced professional team has participated in many successfully completed domestic and international due diligence procedures for the needs of buyers or sellers.
Audits of EU projects
Verification of project costs or colloquially "Audits of EU projects" is an audit engagement of agreed-upon procedures in which the goal of the Auditor is to carry out those agreed procedures based on which Auditor will state the factual situation regarding the intended or non-intended spending of funds from the Grant Funding Agreement.
The Auditor's report is a necessary document with the submission of the Final Report on the project, and the Auditor states the factual situation regarding the occurrence of costs, compliance of accounting and project records, settlement of obligations and other conditions from the Grant Funding Agreement. EU project auditors are usually hired only at the very end of the Project, but our recommendation is to hire an experienced and high-quality Auditor at the very beginning of the Project and to conduct the audit successively with the Project, which reduces the risk of refund of already received grants to the minimum possible level.
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