Audit activities which are performed by an auditor are not limited to audit or financial review. More and more often, the statutory auditor cooperates with the client in the implementation of his plans related to both the development of business and investment and the acquisition of a new source of capital, such as the entry into the stock exchange (both the primary market and NewConnect).
In many cases, the auditor acts as advisor and expert in preparing economic and financial opinions related to specific customer needs. So far, due diligence reports have been most frequently prepared. The results of the report are a necessary compendium of information about the subject whose due diligence was concerned.
The scope of due diligence should be based on the detailed assumptions and requirements that the client has to face in relation to the objective (transaction), in which the results of the report are to be used. This allows the risk of post-trade events to be minimised and provides a solid base for post-trade integration.
Also in the IPO process, the statutory auditor cooperates with the client both in the audit of financial statements and in the creation of a prospectus, which plays a key role because it is a source of information about the company for potential investors.
Therefore, the statutory auditor shall assist in the preparation and verification of documents which are lawfully submitted to the Financial Supervision Authority.
The future in the services provided by the statutory auditor is constant contact with the client during the financial year and the ongoing assistance in solving issues related to both balance sheet law and business advisory.
A financial audit carried out during the year, aimed at analysing specific economic events, will allow customers to avoid both business problems and reporting obligations.
The continuous cooperation of the client with the statutory auditor providing advisory services should consist in cyclically presenting analyses of the entity's financial performance and guidance on solving problems or carrying out the intended activities.
Cooperation should not only be limited to the basic activity concerning the presentation of the results of the conformity audit of the statutory auditor’s basic service in the case of an audit or review of the financial statements.
The future is services consisting of independent financial data analysis and comparative analysis to the average in the industry in which the customer operates.
A statutory auditor acting as an advisor knowing the economic and financial situation of the client and drawing on his knowledge gained during his work for other clients, but not violating the confidentiality principle, looking at the company from the side will see problems and indicate solutions that may not be seen by the company's managers.
When issuing expert opinions, the auditor may provide strategic information but also recommend business process improvements and internal control.
The advisory services provided by an expert resident are services designed to provide the customer with an effective tool to better manage the company, improve the organisation and increase its value rather than meet legal requirements and verify the correctness of accounts.
The financial audit and cooperation with the statutory auditor should not only be an obligation arising from legal provisions but, above all, a permanent cooperation aimed at actively interacting the management team of the company with a financial and economic expert.