Should a governmental body own the majority of shares in a business, then the business’ management business has – if the governmental body wishes so – to entrust the end of year auditor with an extension of his examination according to section 53 of the law on budgetary procedures, which includes the inspection and evaluation of regularity of the management as well as the economic conditions in the context of the end of year inspection. The inspection of the regularity of the management specifically includes regularity examinations of
- the management organisation
- the management instruments
- the management activities.
Besides the legally required examinations, regularity examinations are more and more frequently added as sensible extensions to a legally required or voluntary end of year inspection. This especially applies to tax-privileged corporations such as charity or trade associations as well as institutions which are partially owned by local dioceses.
Our examination is carried out according to the standards laid down by the IdW (IDW PS 720), which includes a list of questions dealing with the regularity of the management and the economic circumstances according to section 53 of the law on budgetary procedures. Nature and extent of the inspection can then be ruled in reconcilement with the client. Exemplary subjects of the inspection are
- basic organisation of structure and processes in your business
- information and controlling
- problems in the range of investment and financing.
On the basis of the results we document weak point as far as necessary, submit proposed solutions and offer our assistance with the realisation of these modifications.