{"id":241900,"date":"2022-02-17T12:47:00","date_gmt":"2022-02-17T11:47:00","guid":{"rendered":"https:\/\/highgate.sk\/milan-gedeon-gave-an-extensive-interview-to-hospodarsky-noviny-on-the-topic-of-audit-and-its-meaning\/"},"modified":"2024-08-05T17:56:50","modified_gmt":"2024-08-05T15:56:50","slug":"milan-gedeon-gave-an-extensive-interview-to-hospodarsky-noviny-on-the-topic-of-audit-and-its-meaning","status":"publish","type":"post","link":"https:\/\/highgate.sk\/en\/milan-gedeon-gave-an-extensive-interview-to-hospodarsky-noviny-on-the-topic-of-audit-and-its-meaning\/","title":{"rendered":"Milan Gedeon gave an extensive interview to Hospod\u00e1rsky noviny on the topic of audit and its meaning"},"content":{"rendered":"\n

Audit is profaned among the wider public as a necessary evil.\nHowever, it performs irreplaceable functions.\nAudit contributes to the institutionalisation of economic reporting.\nIt improves the predictability of financial indicators and adds more trust to business relationships, which has an overall <\/em><\/strong> positive impact on economic growth.\nOf course, the right balance needs to be found.\nYou can read Milan Gedeon’s interview with Hospod\u00e1rske noviny on this topic in Hospod\u00e1rske noviny or in the transcript below. <\/em><\/strong><\/p>\n\n

Under the Statutory Audit Act, the auditor’s report expresses the statutory auditor’s opinion as to whether the financial statements give a true and fair view of the financial position and financial performance.Could you explain what the auditor’s main objective is?<\/strong>The auditor’s objective is to obtain reasonable assurance about whether the financial statements taken as a whole are free from material misstatement, whether due to fraud or error, which enables the auditor to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with applicable law.<\/p>\n\n

Is the audit relevant to the public?<\/strong>Yeah.\nWhen we look at what an audit brings to the public, we come to the conclusion that an audit enhances the credibility and relevance of the information reported in the financial statements and, in many cases, substitutes for direct control by the state.\nAfter all, the very reason for the emergence of auditing was the emergence of capital companies, in which there is a separation of ownership of assets from their management, and therefore the investor seeks the opinion of an independent expert. <\/p>\n\n

Who is to be audited?<\/strong>The obligation to have the financial statements audited applies to the entity’s ordinary and extraordinary separate financial statements.\nThe range of entities to which the obligation applies can be divided into four groups.\nIn the first group are companies and cooperatives, if they exceed the size criteria.\nIn the second are companies and cooperatives whose securities are admitted to trading on a regulated market.\nThe third group includes entities for which a specific regulation imposes this obligation.\nThe audit obligation applies, for example, to foundations, municipalities, non-profit organisations that exceed the established criteria.\nThe fourth group includes entities that prepare accounts in accordance with International Financial Reporting Standards (IFRS). <\/p>\n\n

Does the audit also depend on the amount of income?<\/strong>Legal entities defined in the Income Tax Act, whose amount of the received share of the tax paid for the accounting period exceeds EUR 35 thousand, are also obliged to have their financial statements audited by an auditor for the accounting period in which the funds were used.\nIn addition to the individual financial statements, the consolidated financial statements shall also be subject to statutory audit, irrespective of size or other criteria. <\/p>\n\n

Who should submit the annual report?<\/strong>An entity subject to the obligation to audit its financial statements shall prepare an annual report.\nThese must also be audited.\nThe auditor assesses, for example, whether the annual report is consistent with the financial statements, whether it complies with all the statutory requirements or whether it is free from material misstatements. <\/p>\n\n

What else is taken into account?<\/strong>As the size criteria have gradually changed in recent years, it is necessary to take into account the current criteria when assessing the audit obligation.\nIt shall be assessed whether at least two of the three established size conditions have been exceeded in the current and immediately preceding accounting period.\nIn assessing the obligation to audit the accounts drawn up for the financial year 2021, the company or cooperative shall assess whether, in the current financial year, i.e. 2021, the total assets (gross value) exceeded EUR 3 000 000, the net turnover exceeded EUR 6 000 000 and the average number of employees in one financial year was more than 40.\nFor the immediately preceding accounting period, i.e. 2020, it must be assessed whether the total assets exceeded EUR 2 000 000, the net turnover exceeded EUR 4 000 000 and the average number of employees exceeded 30. <\/p>\n\n

When do the financial statements need to be audited?<\/strong>It must be audited within one year of the end of the accounting period for which it is drawn up.\nThis means that financial statements drawn up as at 31.12.2006 shall be audited at the end of the period from 31.12.2006 to 31.12.2006.\nDecember 2021 must be audited by the end of 2022 at the latest. <\/p>\n\n

When are the accounts to be approved?<\/strong>The entity shall approve the financial statements not later than one year after the end of the accounting period for which the financial statements are prepared.\nThis means that, if the financial statements were drawn up at 31 December 2006, the financial statements must be presented at 31 December 2006.\nDecember 2021, it must be approved by the end of 2022 at the latest.\nIf the financial statements have been approved before they are entered in the register, the entity shall indicate this fact in the general terms of reference by indicating the date of approval on the first page of the financial statements.\nIn this way, it shall fulfil its obligation and shall have no further obligations in relation to the approval. <\/p>\n

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If you are interested in this topic, please do not hesitate to contact us<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Audit is profaned among the wider public as a necessary evil. However, it performs irreplaceable functions. Audit contributes to the institutionalisation of economic reporting. It improves the predictability of financial indicators and adds more trust to business relationships, which has an overall positive impact on economic growth. Of course, the right balance needs to be […]<\/p>\n","protected":false},"author":1,"featured_media":3017,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[87],"tags":[98],"class_list":["post-241900","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-we-in-the-media","tag-accounting-control"],"_links":{"self":[{"href":"https:\/\/highgate.sk\/en\/wp-json\/wp\/v2\/posts\/241900","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/highgate.sk\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/highgate.sk\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/highgate.sk\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/highgate.sk\/en\/wp-json\/wp\/v2\/comments?post=241900"}],"version-history":[{"count":1,"href":"https:\/\/highgate.sk\/en\/wp-json\/wp\/v2\/posts\/241900\/revisions"}],"predecessor-version":[{"id":241906,"href":"https:\/\/highgate.sk\/en\/wp-json\/wp\/v2\/posts\/241900\/revisions\/241906"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/highgate.sk\/en\/wp-json\/wp\/v2\/media\/3017"}],"wp:attachment":[{"href":"https:\/\/highgate.sk\/en\/wp-json\/wp\/v2\/media?parent=241900"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/highgate.sk\/en\/wp-json\/wp\/v2\/categories?post=241900"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/highgate.sk\/en\/wp-json\/wp\/v2\/tags?post=241900"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}