Auditing

Audit of the financial statements is the process of examining and evaluating financial statements and data, and methods used in the preparation of financial statements, on the basis of which an independent and objective opinion is given on the truthfulness or fair presentation of the status of assets, liabilities, capital and business results.

All audit engagements are conducted in accordance with the Audit Act, Accounting Act and application of International Auditing Standards (MRevS), and the Code of Ethics of for Professional Accountants.

What do entrepreneurs gain with auditing? 

A well – established audit of the financial statements, by an internationally recognised network such as UHY, gives your company credibility towards all the users of audit reports that are thus convinced of your scrupulously and accountable business.

Audit review or so-called “small audit” is prescribed by law for Non-profit organizations that earn between 3 and 10 million Croatian kuna in the year preceding the audit review. Entrepreneurs with a smaller volume of business that do not require a high level of audit assurance on the financial statements may decide to perform the audit review voluntarily. 

How is audit review different from audit of the financial statements?

By completing the Audit of the financial statements, the Certified Auditor expresses an opinion on the financial statements, while the audit review expresses the conclusion whether, during the exercise of the audit procedures, something has molded the auditor’s attention and has become the cause for the financial statements not to be drafted in accordance with the applicable financial reporting framework.

Agreed-upon procedures

The agreed-upon procedures are voluntary auditing engagements in which the entrepreneur decides whether to hire auditors and which areas of financial reporting and accounting operations will be examined. The agreed-upon procedures may include an overview of the overall gross balance, the review of the tax calculation, salary calculation,depreciation calculation, or any other agreed-upon procedure. In contrast to the Financial statements auditing  and audit review, the auditor does not express an opinion or belief, but reports on the established factual situation and the derogation from the requirements of the standard and/or the law.

Audit of capital increase or decrease is a specific kind of audit with expressions of opinions, that are stipulated by the provisions of the Company law.

Audit of share capital increase is carried out when the equity is increased by adding additional assets or stock, as well as when the equity is increased from company funds – such as reserves or retained earnings. Audit of share capital decrease is carried out when the equity capital is reduced, nominally or effectively.

The goal of the audit of share capital increase or decrease is to express the auditor’s opinion that all actions taken are in accordance with the provisions of the Companies Act.

Audits of the establishment, merger, acquisition or division take place in case of status changes of companies, under the provisions of the Companies Act, or at the request of the members of the company and the request of the Commercial Court. The objective of the audit of status changes is that the auditor expresses confidence that all actions are in accordance with the provisions of the Companies Act, namely that none of the Investors, pursuant to legal actions carried out, is not damaged by the corresponding share of the share capital. 

Since this is a demanding process that creates the added value of the newly created company/companies, it is advised to contact experts with experience in conducting audits of establishment, merger, acquisition or division even before you begin this process.

Audit of the EU projects is usually the engagement of agreed-upon procedures, but the scope of the audit procedures is prescribed by the Grant Financing Agreements.

The auditor checks that all costs, declared through the final report of the project, are dedicated to the EU project, whether there is credible accounting documentation, whether the accounting and analytical records are harmonised with the report of the project, i.e. whether all other conditions under the grant financing agreement are met.

A poorly or unprofessionally audited EU project can result in the recovery of the funds already received and the automatic classification of your company/institution/association to the blacklist of the beneficiaries of the funds. If you discover any non-compliance with EU regulations on time, you increase your chance to complete the project.

What can we offer:

• Audit of the EU project, aligned with European Union rules
• Compliance with International Auditing Standards (MRevS) (ISA’s)
• Expert team of Auditors with experience
• References

Due diligence is a deep forensic examination of the business books and reporting on the factual situation, especially in the context of the correctness and accuracy of the financial records, the potential existence of “hidden skeletons in the closet” and reporting to potential investors about the findings.

It is mostly used in cases where an entrepreneur buys or sells a company, and it differs whether it is a financial, tax or legal due diligence.

If you are selling the company, we can create:

• Assessment of the value of a company that reveals the strengths and weaknesses of the company
• Plan to increase the value of the business.

If you are planning an acquisition, we can create: 

• Create business plans for the preparation for sale
• Valuation of goodwill and intangible assets
• Tax/financial and legal due diligence.