Final audit in times of crisis – more than just a compulsory task
In the current economic situation, the auditor has a central role to play – not only as a controller, but also as an important interlocutor in the assessment of the company’s ability to continue as a going concern. If the auditor identifies material uncertainties in the course of their work, they must document these and inform the legal representatives accordingly.
What are the auditor’s requirements?
The auditor assesses whether the going concern assumption is appropriate. If there are events or circumstances that cast doubt on this – for example, expiring credit lines, impending breaches of covenants or unrealistic planning – the auditor must request additional evidence. If this is not provided, this can lead to a modified audit opinion or even its refusal.
What happens in restructuring situations?
In restructuring cases – particularly in the event of imminent insolvency – the auditor examines whether the measures to ensure the company’s ability to continue as a going concern are realistic and comprehensible. The legal representatives must specifically explain how they intend to eliminate existing uncertainties. Otherwise, a material uncertainty must be disclosed in the audit report – with potential consequences for the confidence of banks, creditors and investors.
Important: Notes are also required when creating instead of checking
Even in the case of a pure preparation engagement, the auditor is obliged to point out recognizable risks. If there are objective doubts about the continuation, no certificate may be issued – and in extreme cases, the engagement must be terminated.
Why we are the right contact
We have been supporting numerous medium-sized companies for 25 years – and know which measures are required both in successful phases and in times of crisis.
As a tax consultancy and auditing company, we contribute our expertise from both perspectives and support you with a holistic view of your company.
The use of modern technologies enables us to work with you digitally and in a solution-oriented manner – efficiently, flexibly and even across physical distances. At the same time, we are happy to provide you with personal advice at our Leipzig office.