- The Big 4 vs Second Tier Auditors
- Professional Skepticism
- about finding mistakes, not fraudulent/criminal behavior
- group management report … Lagebericht
- KAM … Key Audit Matters
- matters which are of most significant during report
- reasonable vs limited assurance
- IAASB
- Audit Opinion
- unqualified → always preferred
- in EU qualified opinions are very uncommon
- in USA qualified opinions are more common
- qualified → ringing alarm bells
- disclaimer of opinion (not giving any opinion)
- adverse (gross misstatement) → all over the news
- very high workload during change of year (1st of December until 31st of January)
- event is recognized after 31st of December but before finalization of report
- if cause is before 31st → include in report
- if cause is after 31st → next years report
- if effect is material → “subsequent events” included anyways
Auditors Report of Henkel
- governance report is only checked for completeness, not for correctness
- auditors opinion:
- comply in all material respects with IFRS
- KAMs
- “recoverability of goodwill and trademarks and other rights with indefinite useful lives”
- “recognition management of pension provisions”