What is an accounting firm


An audit is used to determine whether a company or its accountant has the entire Financial reporting within an examination period correctly have performed. The latter is usually a financial year, which usually coincides with a calendar year. The auditing may only be carried out by persons who are entitled to do so through certain qualifications.

You must either be a licensed auditor (in accordance with the WPO regulations) or be a sworn auditor. An audit may also only be carried out by an external auditor who does not belong to the audited company.

The purpose of an audit

An audit is carried out on behalf of the company itself. The purpose of the audit is to clearly determine whether the financial reporting is correct, that is, whether it meets the accounting standardsthat apply to the respective company. The regular auditing is of particular relevance for companies that, due to their legal form and size, are obliged to prepare accounts and thus also to so-called double-entry bookkeeping.

During the audit, the bookkeeping and accounting for the audit period are therefore also intensively examined and assessed with regard to their correctness. The aim is to be able to determine after the audit whether profits and tax charges have been correctly reported. The audit has to do with this a payment assessment function and determines the relevance of the commercial balance sheet compared to the tax balance sheet. It also fulfills the Information function to employees, business partners, investors and shareholders of the audited company by informing them about the correctness of the financial reporting.

What happens after the audit

After the audit, the audited company receives the results from the auditor and either an unrestricted or restricted audit certificate - or this is denied to the company due to too many or too significant inconsistencies in the financial reporting. In the event of a refusal or restricted issuing of the audit certificate, the company concerned must correct its financial reporting based on the audit results.

Summary auditing

  • examines the accuracy of a company's financial reporting
  • may only be carried out by external and approved auditors
  • serves for information, the assessment of payments and the determination of a correct tax ID
  • A positive test result can be granted unreservedly or restrictedly or completely refused