Assessing liquidation, composition and insolvency proceedings

An inspection in the context of liquidation according to sections 316 (et seq.) of the commercial law generally speaking is a job reserved for the auditor. The objects that have to be examined on are the opening balance sheet created by the responsible liquidator and the illustrating report. During the liquidation the process it might turn away from the otherwise relevant principle of going concern. The assets have to be estimated with their single disposal or sale value.

In extrajudicial composition proceedings we check if the composition rates have been calculated properly and if the composition has actually been transacted in a manner as contractually agreed upon.

Any accounting obligations that arise from an insolvency proceeding are subject to inspections by the insolvency court. The court is entitled to authorise third persons to carry out the process of inspection.

Therefore we operate as auditors authorised by the court. The auditor basically concentrates on checking regularity, integrity, profitability.

Provided that the insolvent business is subject to the obligations according to sections 316 (et seq.) of the code of commercial law (HGB), then the abovementioned applies to the legal end of year examination.