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Investor Presentaiton

Auditing Requirements Audits are compulsory for: • large accounting units; . • medium accounting units; small accounting units that are joint-stock companies and that, in both the current and previous accounting period, have met at least one of the following criteria: net turnover exceeds CZK 80 million per annum; • total assets exceed CZK 40 million; • the average number of employees exceeds 50; • • all other small accounting units that meet at least two of the above criteria in both the current and previous accounting period; certain non-profit organisations. Audit requirements also apply to annual reports: • • The auditor expresses an opinion on whether the annual report is consistent with the financial statements for the same financial year and whether it was prepared in accordance with legal requirements; or the auditor issues only one report which comprises opinions on both the financial statements and the annual report. The Act on Auditors defines the responsibility of the Chamber of Auditors, which authorises auditors and sets the standards for audits and also the responsibility of the Public Audit Oversights Board, which supervises over its activity. Audits are carried out in accordance with the Act on Auditors and the International Standards on Auditing (ISAs) as amended by relevant application guidelines of the Chamber of Auditors of the Czech Republic. 122
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