AUDIT SERVICES
An audit is the examination of the financial report prepared by a company by someone independent of that company. The financial report includes a balance sheet, a profit and loss account, a statement of changes in equity, a cash flow statement, and notes comprising a summary of significant accounting policies and other explanatory notes and a management report (mandatory to have a abridged one for medium-sized and a full one for a large-sized company as shown below).
The purpose of the audit is to express an opinion whether the information presented in the financial report, taken as a whole, reflects in material aspects the financial position of the company at a given date and the performance of the company for the period ended at that date.
When examining the financial report, auditors must follow auditing standards which are set by a government body. Once auditors have completed their work, they prepare an audit report, explaining what they have done and giving an opinion drawn from their work. Generally, all listed companies and limited liability companies are subject to an audit each year unless expemted. Other companies may require or request an audit depending on their structure and ownership as well as some counterparties they work with or supervised by.
Examples when the audit opinion should be prepared:
- Required or requested by any regulatory authority.
- One of the partners needs an audited report to review the company accounts.
- Requested by banks to issue a new / review / upgrade some of the banking products / facilities etc.
We are in touch with the auditors accredited in Luxembourg. We provide audit reports for any type of business, Bank purpose or any other.
We can organise an audit for the companies based in Luxembourg.
The law defines the following criteria and the audit / annual report contents:
– small-sized companies (exempt from the mandatory audit) – total assets less than 4.4m EUR/ net turnover less than 8.8m EUR/ less than 50 FTE. Non-listed small-sized companies may prepare an abridged balance sheet, an abridged profit and loss account and abridged notes to the annual accounts. No annual management report is required.
– medium-sized companies – total assets less than 20m EUR/ net turnover less than 40m EUR/ less than 250 FTE. The balance sheet and the Profit and loss account must be prepared. Non-listed medium sized companies may present an abridged Profit and Loss account and may prepare an Abridged management report.
– large-sized companies – other companies. Full set of accounts with the management report must be prepared.
