Final Proj Ausdit

8/9/2019 Final Proj Ausdit

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Financial Controllers S.A. ABC COMPANY LIMITED

Auditing Coman!

ABC COMPANY LIMITED

FINANCIAL STATEMENTS FOR THE YEARS ENDED

DECEMBER 2005 AND DECEMBER 2006

ASSESSMENT OF FIXED ASSETS

(ACCOMPANIED BY THE AUDITORS REPORT)

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Report concerning the audit of fixed assets

1. General information concerning the audit mission

Audited company: ABC Company Limited

Auditing team:

Contract: no. 234456/ 15.04.2007 signed by ABC Company Limited and Financia

Cont!oe!s ".A.

Legal basis: #A" $#omanian Acco%nting "tanda!ds&' (F#" $(nte!nationa Financia

!epo!ting "tanda!ds&' (A"

Period of the audit: 15.04.2007 ) 15.05.2007

Audited period: *inancia statements as o* 31 +ecembe! 2006

Mission goal: e,a%ate *i-ed assets discos%!e in te *inancia statements

Audit type: *inancia a%dit

Methods and techniques employed: assessment o* *inancia statements' anaysis'

compa!ison' !e comp%tation

Examined documents: Baance "eet' "tatement o* (ncome' "tatement o* Canges in

%ity' "tatement o* Cas Fos' otes to Financia "tatements

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2. Auditors opinion

e' !ep!esentati,es o* Financia Cont!oe!s ".A.' a%dited te 2006 yea! end

*inancia statements o* ABC Company Limited' it te p%!pose o* e,a%ating and

assessing te discos%!e o* te *i-ed assets by te company. ese *inancia statementsa!e signed by te e-ec%ti,e management o* te company' ic taes *%

!esponsibiity !ega!ding te in*o!mation inc%ded te!ein. %! soe !esponsibiity is to

e-p!ess an opinion conce!ning te discos%!e o* te *i-ed assets o* te company' based

on te *inancia a%dit.

is !epo!t as been conc%ded *o! te %se o* te company8s sa!eode!s' as

an entity. e scope o* te a%dit is to p!esent sa!eode!s te pa!tic%a! p!obems

disco,e!ed' *o! te discos%!e o* ic e a!e iabe. Acco!ding to te ega

p!o,isions' e do not tae any !esponsibiity toa!ds any ote! entity' besides ABC

Company Limited and its sa!eode!s' in at !ega!ds o%! a%dit' tis !epo!t and o%!

opinion.

%! a%dit as ca!!ied o%t acco!ding to te (nte!nationa Acco%nting "tanda!ds'

as e as te A%diting "tanda!ds adopted by te Financia A%dito!s Cambe! *!om

#omania. ese standa!ds !e%i!e %s to pan and ca!!y o%t te a%dit in s%c a ay tat

e obtain a !eiabe ce!ti*ication conce!ning te *inancia statements' in o!de! to attest

tat tey do not contain mate!ia e!!o!s. e a%dit inc%des te e-amination' based on

tests' o* te a%diting sampes !ega!ding te amo%nts and in*o!mation discosed in te

*inancia statements. F%!te!mo!e' te a%dit inc%des te e,a%ation o* te acco%nting

p!incipes %sed and te mate!ia estimations made by te management' as e as te

assessment o* te gene!a p!esentation o* te *inancia statements. e beie,e tat o%!a%dit !ep!esents a mate!ia basis *o! te opinion e e-p!essed.

e o%d ie to point o%t a *e aspects discosed in te a%dited *inancia

statements tat d!e o%! attention:

Intangible assets te g!oss ,a%e o* te intangibe assets' as discosed in

te acco%nting poicies' dec!eases *!om 9"+ 1'050 in 2005 to 9"+ 10 in

2006' s%ggesting disposas o* intangibe assets. n te ote! and' te cas

*o ony discoses p%!cases o* intangibe assets o* 9"+ 45. (* e e!e

to conside! aso te p%!case o* te so*ta!e *!om te !eated pa!ty' o*

9"+ 142' inconsistencies e-pand.

Fixed assets acquired under financial lease te g!oss boo ,a%e o* *i-ed

assets ac%i!ed %nde! *inancia eases discosed in te cas *o is 9"+

37 *o! 2006' ie te acco%nting poicies indicate a ,a%e o* 9"+ 710

*o! te t!anspo!tation e%ipment ac%i!ed %nde! capita ease.

Investments regarding the acquisition of shares te in,estments catego!y

comp!ises te stoc tat te ABC Company Limited ons in ote!

companies. Looing in te baance seet' e notice no cange:

in,estments amo%nt' *o! bot 2005 and 2006' 9"+ 3;. n te ote! and'

i* e cec te cas *o' e can easiy notice te catego!y o*


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*!om te step %p ac%isition o* sa!es> amo%nting 9"+ ;60' it min%s.

is is anote! inconsistency in te discos%!e o* te *inancia statements.

Deferred tax asset te baance seet p!o,ides te amo%nt o* 9"+ 25'

*o! 2006' conce!ning te ad?%stment o* te de*e!!ed ta-. n te ote! and'

te cas *o statement does not mae any !e*e!ence to any ad?%stment o*tis type' en in *act so%d a,e discosed it.

e main iss%e !ega!ding a te abo,e catego!ies is tat te!e is not a cea!

consistency and co!!eation beteen a te *inancia statements conc%ded by te

company. (t is impossibe' ito%t anaysing *%!te! doc%ments tat co%d e-pain te

canges in tese catego!ies' to see te connection beteen te *inancia statements.

e!e*o!e' taing a tese into conside!ation and based on te *act tat e

co%d not pe!*o!m a to!o%g e-amination o* ote! doc%ments to s%ppo!t te *inancia

statements conc%ded by te company' s%c as: in,oices' p%!case cont!acts' sae

cont!acts' one!sip cont!acts' as tey e!e not a,aiabe d%!ing te a%diting pe!iod'

e e-p!ess a discaime! opinion in at conce!ns te discos%!e o* te *i-ed assets o*

te Company ABC Limited.

@ay 17t2007 Financia Cont!oe!s

A%diting Company

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3. Steps to be undertaken in the auditing process of AB ompan! "imited

(n o!de! to pe!*o!m a to!o%g e-amination and a%dit o* te *inancia

statements o* te company in o!de! to e-p!ess a cea! opinion conce!ning te

discos%!e o* *i-ed assets' e' te *inancia a%dito!s' need to be p!o,ided it eno%g

in*o!mation as to d!a %p te *ooing tabes' o!ing pape!s and to p%!s%e te*ooing steps:

3.1. #able regarding the fixed assets cost$ accumulated depreciation and

net book %alue for the !ears ended &ecember$ 31 2''( and &ecember$ 31 2'')$

for each categor! of fixed assets.

is tabe contains te boo ,a%e o* tangibe and intangibe *i-ed assets as o*

+ecembe!' 31 2006' te co!!esponding dep!eciation and amo!tiation' as e as

p!o,isions *o! impai!ment.

e anaytica ,a%es $co!!esponding to te same syntetic acco%nt& need to be

!econcied it te syntetic ,a%e *!om te cent!aiing tabe.

e ,a%es in te tabe m%st be ceced to be:

(n acco!dance it te cosing acco%nt baances o* te p!e,io%s yea! $*o! tis

yea!8s beginning acco%nt baances&

(n acco!dance it te *i-ed asset !egiste!.

(n acco!dance it te acco%nt !eco!d $*isa de cont&

(n acco!dance it te t!ia baance

(n acco!dance it te inte!im *inancia statements

3.2. #able *ith the ne* fixed assets recorded during the audited

accounting period

e tabe contains te ent!ance ,a%e o* tese assets and m%st be !econcied

it te inp%ts position in test 3.1. As e as tis' !econciiations m%st be made it

*i-ed assets !egiste!' acco%nt !eco!d' ?%sti*ying p!ima!y doc%ment' gene!a ?o%!na.

3.3. #able *ith fixed assets outputs during the audited period

e in*o!mation contained in te tabe m%st be !econcied it te o%tp%t

*ig%!e *!om te tabe in test 3.1. e ,a%es in te tabe m%st be !econcied it *i-ed

assets !egist!a!' acco%nt !eco!ds' p!ima!y doc%ments' gene!a ?o%!na.

3.+. #able *ith profit,loss obtained from fixed assets disposals during the

audited period

e tabe m%st be !econcied it te tabe *!om test 3.3. e p!o*it and oss

comp%tation *!om disposa m%st be ceced as a co!!ect comp%tation can a,e

signi*icant e**ect on te p!o*it/oss *o! te oe acti,ity.

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3.(. #able *ith fixed assets obtained through financial leasing or

instalments agreement. Re%ising financial leasing contracts or installment

agreements and assuring that assets$ as *ell as liabilities ha%e been correctl!

recorded and presented.

e tabe m%st be !econcied it te tabe in test 3.2. e *i-ed assets ica!e s%b?ect to *inancia easing cont!acts m%st be co!!ecty !eco!ded in te boos o*

te Company as a !es%t o* te p!incipe. Leases o* p!ope!ty'

pant and e%ipment e!e te Company ass%mes s%bstantiay a te bene*its and

!iss o* one!sip m%st be cassi*ied as capita eases. e p!ope!ty' pant and

e%ipment ac%i!ed %nde! capita easing cont!acts is dep!eciated o,e! te %se*% i*e

o* te asset.

#enta payments in !espect o* ope!ating eases a!e !ecognised as e-pense en

inc%!!ed.

3.). #ables concerning depreciation expenses corresponding to the audited

period

e in*o!mation in tis tabe m%st be !econcied it te in*o!mation in tabe

3.1.

3.-. #ables *ith fixed assets re%aluation during the audited period

e Company does not a,e any poicy conce!ning te !e,a%ation o* *i-ed

assets' so te!e e!e no inc!eases o! dec!eases in te ,a%e o* assets d%e to

!e,a%ation.

3.. #able *ith repairs and betterments and decision *hether there are

elements *hich need to be capitali/ed.

e company as not !eco!ded any !epai!s o! bette!ments' so it is not te case

*o! deciding ic eements so%d be capitaied.

3.0. &ecision *hether ph!sical check of fixed asses is necessar!

Acco!ding to te mate!iaity e,e comp%ted' some assets m%st be ceced *o!

pysica e-istence and ?%sti*ying doc%ments m%st be attaced in o!de! to soone!sip and boo ,a%e o* tese assets.

3.1'. heck of o*nership documents for important assets

e one!sip doc%ments m%st be ceced to ens%!e tat tey beong to te

Company. e Company does not on any assets ose one!sip doc%ments a!e

ed by ote! pa!ties' so no con*i!mation as been needed *!om tese pa!ties.

3.11. #able *ith in%estments engagements$ if this exists$ making the

distinction bet*een the contracted$ but not sho*n in the financial statements$

and the authori/ed but not contracted ones

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e Company does not a,e any ist it in,estments engagements *o! te

*o!eseeabe *%t%!e.

3.12. &ecision *hether there is e%idence regarding fixed asset impairments

and assure that if !es$ a corresponding pro%ision has been constituted.

Acco!ding to "tatement 144 adopted by te Company on an%a!y 1' 2002'

*i-ed assets s%c as p!ope!ty' pant and e%ipment' and p%!cased intangibe s%b?ect

to amo!tiation' a!e !e,ieed *o! impai!ment ene,e! e,ents o! canges in

ci!c%mstances indicate tat te ca!!ying amo%nt o* an asset may not be !eco,e!abe.

(* te ca!!ying amo%nt o* an asset e-ceeds its estimated *%t%!e cas *os' an

impai!ment ca!ge is !ecognised by te amo%nt by ic te ca!!ying amo%nt o* te

asset e-ceeds te *ai! ,a%e o* te asset' acco!ding to te p!%dence p!incipe.

e,e!teess' te adoption o* "tatement 144 did not a**ect Company8s *inancia

statements as te Company as not !eco!ded any p!o,isions *o! impai!ment o* its

*i-ed assets.

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Final Proj Ausdit