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Audit of annual financial statements
Depending on the size of the company, corporations and partnerships are subject to different degrees of auditing.
Small corporations are not subject to an audit, i.e. the documentation of their accounting does not have to be audited by
an accountant. However, medium-sized and large corporations are bound by law to have the documentation of their accounting
verified by an auditor or a certified public accountant (Article 319 Paragraph 1, Sentence 1 of the Law of Trades,
Handelsgesetzbuch/HGB). Only the auditor is authorized to review large corporations.
The scope of the annual financial statement depends on the liability of a company.
Corporations and partnerships with no natural person who is unlimitedly liable (GmbH & Co. KG),
the annual financial statement consists of a balance sheet, profit and loss account and an annex.
Besides the annual financial statement, corporations and the aforementioned kind of partnership have to issue a
management report (Article 264 Paragraph 1 in connection with Article 264 a HGB).
Sole traders and commercial partnerships, which have a natural person with unlimited liability (OHG, KG) are not
subject to these conditions. They are only obligated to prepare a simple annual financial statement according to Article
242 Paragraph 1 HGB, as long as the Law of Publicity (Publizitätsgesetz) is not applicable to them as a large concern.
A large concern is given, if at least two of the following criteria apply on at least three subsequent balance sheet key dates:
- balance sheet total is greater than 65 million EUR
- sales revenue is greater than 130 million EUR
- employment of more than 5.000 employees
As a team of tax consultants, accountants, business economists and attorneys,
MerzArnoldWüpper presents you with an experienced, competent team. Our services in the area of auditing include in detail:
- Legally required and voluntary auditing of companies of all legal forms
- Auditing of individual and consolidated accounts
- Auditing of consolidated management reports
- Performance of statutory audits
- Auditing of non-profit institutions (foundations and societies)
- Auditing of formation balance sheets, interim balance sheets and closing balance sheets for reasons of legal requirement or other reasons (acquisition of shares (a participation), increase in capital, incorporation of new associates/partners, resignation of associates/partners)
- Auditing of specific purpose balance sheets and budgeted balance sheets
- Plausibility check in preparation of a financial statement
- Analysis of the annual financial statements with comparison to multiple years and analysis of the success
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