Audit & Assurance

The purpose of an audit is to provide all stakeholders with certainty whether financial statements present fairly, in all material respects, the financial position of the company and its financial performance. An understanding of the key risks to which a business is exposed is achieved through a professional and independent overview of the business.

In addition to the provided opinions, an important objective of an audit is to improve business processes. The methodological approach we employ in our work is based on the requirements of the International Standards on Auditing while the technology and tools applied contribute to the efficiency and quality of our services. We provide support during the implementation of all the recommendations resulting from an audit process and assist in understanding information related to taxes, accounting and finance. Through a continuous and quality collaboration with our clients, the long-term goal is to minimise errors to a minimum level.

Although audits are prescribed by law for certain businesses, there is an increasing number of entrepreneurs who voluntarily decide to hire an audit team in order to obtain an independent verification of their business, improve processes, and avoid errors and non-compliance with the law.

Contact our audit team for additional information and arrange an informative meeting.

Making the decision to buy an existing business is a dynamic and challenging process. Every investor wants to get the most complete possible overview of the company’s operations and therefore often opts to hire several expert teams for different business segments – legal, taxes, financial reporting. If necessary, experts from other segments can be hired as well, depending on the company acitivities for which investments are planned.

The role of an auditor in a due diligence process is to review the correctness and authenticity of the data in the financial statements by employing a systematic approach and subsequently inform the investor thereof.

We have years of experience in due diligence engagements in a variety of industries, which allows us to complete the job as efficiently, quickly and successfully as possible.

The audits prescribed by the Companies Act are special audits that involve assurance engagements, and include audits of share capital increases and reduction, as well as audits of company incorporations, acquisitions, mergers and divisions.

An audit of a share capital increase is carried out when capital increases through investments made in assets and rights or by converting the reserves or retained earnings into the share capital (financial statements provide the basis for deciding).

An audit of the share capital reduction may be carried out when the nominal amount of the shareholders’ contributions has been reduced (nominal reduction) or when shares have been returned to company members (effective reduction). In effect, nominal reduction of share capital is common practice to cover losses where changes occur only within capital, without any disbursements being made to company members.

A company incorporation audit is carried out during the incorporation of a company by entering assets and/or rights. The auditor verifies the accuracy and completeness of the founder’s data regarding the investment in the share capital, the takeover of the shares, and whether the value of the investment and the takeover of the assets and rights corresponds to the amount of the share capital.

An audit of a company acquisition, merger or division is carried out in such a way that the auditor reviews the status change agreement together with all the schedules from the accounting records and, after completing the audit, produces a written audit report certifying that everything has been carried out in accordance with the requirements of the Companies Act, i.e. the auditor verifies whether the members of the company have retained/received the correct capital ratios.

An EU project audit is carried out in accordance with the International Standards on Auditing. For each project, it is verified whether all costs are accounted for under the terms of the financing agreement. Audit procedures are carried out by directly examining the documentation and verifying its authenticity and compliance with all contract terms.

A review is a limited-assurance engagement and is performed in accordance with the International Standard on Review Engagements – ISRE 2400 (revised). Compared to an audit, a review provides a lower level of assurance.

Entities legally bound to conduct reviews are non-profit organisations that earn between 3 million kuna and 10 million kuna annually (when their revenues exceed 10 million, that triggers their obligation to perform audits).