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Audit services

Specialists in the Audit department of Schaffer & Partner Group provide our clients with audit services as well as other services. They include especially the following areas of services:

1. Obligatory audits in accordance with the Act No. 93/2009 Coll., on Auditors, i.e. audit of ordinary financial statements prepared in accordance with Czech accounting standards, required by legislation of the Czech Republic.
2. Obligatory audits of interim financial statements  prepared in accordance with Czech accounting standards, required by legislation of the Czech Republic.
3. Obligatory audits of consolidated financial statements  prepared in accordance with Czech accounting standards, required by legislation of the Czech Republic.
4. Obligatory audits of extraordinary financial statements  prepared in accordance with Czech accounting standards, required by legislation of the Czech Republic.
5. Audits of documentation for consolidation purposes  prepared in accordance with audit instructions of the parent company.
6. Audits of ordinary and extraordinary financial statements prepared in accordance with other than Czech accounting standard, especially in accordance with IFRS or US GAAP.
7. So called „non-obligatory/contractual audits“, i.e. audits of financial statements prepared in accordance with Czech accounting standards in cases, when those audits are not required by the local legislation.
8. Assurance of other economical information  performed in accordance with standards on auditing.
9. Other services in accordance with the International Standards on Auditing (ISA)
10. Financial due diligences, i.e. reviews of financial situation of the company based on the requirements of potential investors.
11. Accounting advisory  on the field of Czech accounting standards as well as International Financial Reporting Standards (IFRS).
12. Assistance and advisory on transformations of companies
13. Advisory on internal control systems
14. Forensic services

All services stated under points  1 to 9 are performed by Audit department specialists in accordance with the standards on auditing, namely in accordance with the Handbook of International Quality Control, Auditing, Review, Other Assurance and Related Services Pronouncements of ISA. Those standards are published by International Federation of Auditors (IFAC). Our specialists are trained on an annual basis in those standards. Their performance on assurance engagements is checked through a two-step control within Schaffer & Partner Audit s. r. o..

The high quality of audit services provided includes a personal approach and contact of key personnel to our clients. This personal approach enables us to solve all potential problems of our clients in a timely manner and not only to their satisfaction but also to the satisfaction of our clients´ parent companies.  

To the individual services we can add following:

1. Obligatory audits in accordance with the Act on Auditors

Obligatory audits in accordance with the Act on Auditors represent performance of audit to the extent required by standards on auditing for ordinary financial statements in case, when the company fulfills the criteria of obligatory audit stated in § 20 of Accounting Act No. 563/1991 Coll..

During the performance of audits we consider with full responsibility the specifics of the business activities of our clients. We ensure that our specialists are familiarized with the business activities of our clients and fully understand the flow of individual business and the accounting processes of the company. We always aim to meet with the previous auditor when taking over the engagement from another auditor. We emphasize the performance of regular interim audits, which not only allows understanding the business of the client, but also provides sufficient time to solve potential problems of the client before the end of the accounting period.

All of our audit recommendations are issued continuously in individual phases of the audit as a draft version. Those recommendations are discussed with clients´ management personally and afterwards they are issued in a final version.

Audit services are provided for a fixed, previously negotiated, price. Any possible increase of price would be due to unforeseen increased work difficulty which is a very rare event. On the contrary, we prefer to fix the price for a longer period to enable our clients to responsibly budget their expenses for the service.

Our performance results in audit recommendations and auditor´s reports which are in accordance with the standards of auditing. At the request of the client, we are able to issue the recommendations and reports not only in Czech, but also in German or English, when the financial statements, in accordance with the Czech accounting standards, are prepared in German or in English. We are able to effectively assist during the preparation of statutory financial statements in German or English.

2. Obligatory audits of interim financial statements

Similarly, as with obligatory audits of ordinary financial statements, we perform also obligatory audits of interim financial statements especially when those interim financial statements are required by the Czech legislation or requested by financial institutions.

3. Obligatory audits of consolidated financial statements

Similarly, as with obligatory audits of ordinary financial statements, we perform also obligatory audits of consolidated financial statements when the company fulfills the criteria of obligatory audit of consolidated financial statements stated in § 22 of Accounting Act No. 563/1991 Coll..

We are of course prepared to effectively assist in organization of the whole consolidation process of the company.

4. Obligatory audits of extraordinary financial statements

Similarly, as with obligatory audits of ordinary financial statements, we perform also obligatory audits of extraordinary financial statements when those financial statements are required by the Czech legislation, especially when the determining date of transformation is other than the first date of the ordinary accounting period (calendar of business year).

5. Audits of documentation for consolidation purposes

Documentation for consolidation purposes is prepared by Czech companies for consolidation of their financial results into financial statements of their parent companies. This documentation is prepared by the management of the financial departments of Czech companies and audited by “Czech” auditors. Those audits are usually performed in accordance with audit instructions received from parent companies´ auditors.

We perform audit of that documentation and communicate with parent companies´ auditors not only in English, but also in German. Therefore, we are able to prepare all documentation for the parent companies´ auditors in their mother tongue.

Due to our experience, we are also able to effectively assist local management in preparation of the documentation for their parent company.

We are registered in PCAOB and are therefore able to provide this service also to clients, whose parent companies are issuers of securities in the USA.

6. Audits of ordinary and extraordinary financial statements prepared in accordance with other than Czech accounting standard

In some cases Czech companies prepare their financial statements in accordance with other than Czech accounting standards. In that category fall especially financial statements prepared in accordance with International Financial Reporting Standards (IFRS) for companies, which issue securities traded on controlled markets (stock exchanges) with the seat in member states of the European Union for whom §19a of Accounting Act No. 563/1991 Coll. states the duty to prepare financial statements in accordance with IFRS.

Continuous training of our specialist in the field of IFRS enables us to expertly audit these financial statements as well.

7. So called „non-obligatory/contractual audits“

In some cases companies can ask for audits of financial statements also when they don´t fulfill conditions of the obligatory audit stated in § 20 of Accounting Act No. 563/1991 Coll. These so called “non obligatory/contractual audits” are based on the Act on Auditors considered as assurance of other economical information and thus as audit procedure. Also in these cases auditors have to perform the assurance in accordance with International Standards on Auditing (ISA).

8. Assurance of other economical information

Based on International Standards on Auditing (ISA) assurance of other economical information includes the following engagements:

• Reviews of financial statements in accordance with ISRE 2400
• Assurance engagements, which are neither audits nor review of historical financial information

Reviews of financial statements are required by our client when the company does not have obligatory audit and it is not required on such a level of assurance related to financial statements, which is usually expected with financial statements´audits. Generally reviews of financial statements give a lower level of assurance and also scope of the work is lower than with an audit. Especially when the company has no obligatory audit and wants to decrease the extent of audit procedures including the audit fee, it is possible to recommend performance of review of financial statements in accordance with ISRE 2400.

Sometimes the auditor can be asked for assurance, which is neither audit of financial statements nor historical financial information. In this case assurance of certain specific circumstances for third parties users – e.g. subsidiaries providers are performed by our auditors in accordance with ISAE 3000 for those assurance engagements.

9. Other services in accordance with the International Standards on Auditing (ISA)

Other services in accordance with ISA represent especially agreed upon procedures, performed in accordance with ISRS 4400. The outcome of agreed upon procedures is the performance of audit procedures, which the auditor agreed to with the company, and eventually with a third party, and issue of report on factual findings.

These services are provided when engagement letting does neither agree with review of financial statements nor to assurance of other economical information.

10. Financial due diligences

Financial due diligences are engagements performed by our auditors for potential investors of the company. Our specialists are prepared to perform detailed financial analysis of the entity, which is in the focus of the potential investor and provide the investor with the full due diligence report, which includes all findings necessary for:

• Decision about potential investment into the company
• Negotiation of the purchase price

We are able to prepare the due diligence report in a detailed form as well as in a “bullet form”, i.e. short form quick and easy decision of the potential investor. Due diligence engagements include also detailed presentation of those findings to the investor and the ability to prepare the report in German or in English.

When preparing these reports we are able to cooperate with our colleagues from the tax and legal departments. This cooperation in practice excludes the possibility of any risks with financial, tax or legal impact remaining undetected and not being taken into account during the final decision of the potential investor.

11. Accounting advisory

We provide continuous advisory in the field of Czech accounting standards as well as IFRS. For that advisory we are regularly trained in Czech accounting standards, interpretations of the National Accounting Board, and IFRS. Our specialists also hold international certification of The Association of Chartered and Certified Accountants (ACCA).

12. Assistance and advisory on transformations of companies

Wide range of experiences of our specialist from participations in audit parts of transformations of companies enables us to provide our clients with complex advisory in the process of transformation. During the process we are prepared to cooperate with our lawyers and tax advisors as well as the current lawyers and tax advisors of our clients.

When advising we are able to prepare detailed alternatives of transformation with potential future impacts to accounting, tax or legal areas of participating subjects. We are able to prepare these reports in Czech as well as in German or English.

13.  Advisory on internal control systems

The assessment of the internal control system of our client is an integral part of our audit. Our experience enables us to use that knowledge not only for audit purposes but also for statement of practical recommendations to our client.

We are also able to propose and implement an effective and suitable internal control system, which will fulfill not only local expectations, but also SOX requirements.

14.  Forensic services

So called forensic services represent engagement, when we check suspicions or findings related to potential fraud or embezzlement. Our specialists have a wide range of expertise in forensic investigations enabling them to provide our clients with effective and useful services.