“Auditing is the quality certificate of financial statements and economic processes”
Being conducted by economic professionals, authorized by The Chamber of Financial Auditors of Romania, we strongly believe that the auditor should have the following skills:
- detail oriented in loc de attention to detail;
- analytical, with good synthesis capacity;
- attention to detail;
Using audit to enhance the efficiency of the internal economic processes as part of creating an organizational culture, being based on rigorous process analysis, during the internal audit we establish the following:
- working procedures;
- steps to perform the economic processes in chronological order;
- information flow;
- internal accounting rules;
- documents flow;
- responsibilities of each department;
- deadlines for performing the internal processes;
- relevant and measurable performance (KPI) and risk (KRI) indicators specific for the economic entity.
Through the audit process, as auditors, we track economic processes, signal and correct functional deviations and certify the correctness of the accounting records, according to the legal norms in force, of all economic operations carried out, records which form the basis of the financial analyzes underlying the management decisions.
“The overall goal of a financial audit is to provide the assurance that the financial statements examined are complete and accurate and that the economic operations have been performed in accordance with the relevant laws and regulations in force. Through the audit reports, the auditor seeks to provide reasonable assurance – not an absolute assurance – that the financial statements examined are complete and drafted in accordance with the relevant laws and regulations in force.” (Romanian Court of Accounts – Financial Audit and Regularity Handbook – Bucharest 2003).
During the external audit, we begin by verifying the accounting records, identify and assess the risks for each category of economic operations, select the audit tests to identify the problems and analyze them in depth, explain and correct their effects on economic results.
Financial evaluation involves treating assets and economic activity from the market point of view defined by the effort to create a new entity with the same economic parameters and the same market position.
Just like the audit, business valuations involves several approaches in the light of the methodologies used to determine the purpose for which the evaluation is carried out and is regulated by The Body of Expert and Licensed Accountants of Romania.
The evaluation can have the following goals:
- estimating costs of mergers or dissolutions;
- estimating damages in case of events;
- forecasting an entity’s trading value;
- issuing or selling shares.
The outcome of the business valuation is independent of the wishes and needs of the client who hires the evaluator, but the valuation method is chosen in line with the objectives of the client, with respect to the principles of professional ethics defined by The Body of Expert and Licensed Accountants of Romania.
One of the evaluator’s main strengths in which we believe is the discretion to the client’s external environment.