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Nowadays, the personality of the auditor is an increasingly complex adviser who knows the plans and wishes of the client, understands the subject of business in detail, and his role is much more than an effective control of financial reporting.
The audit profession is a strictly regulated activity, and the latest amendment to the Auditors’ Act has brought a whole new set of auditing services to strengthen the independence of auditors and reduce the conflict of interest. It should be added that the tightening applies to audits of public interest entities (banks, insurance companies, etc.) in particular and the provision of non-audit services to other entities is permissible when applying appropriate safeguards. The fundamental change that the amendment to the Act on Auditors has brought from the user’s point of view is in the form of the auditor’s report. You will now find everything essential in the first paragraph, i.e whether the auditor issued an “unqualified” or “reserved” statement. However, the auditor’s report is only a fraction of what the auditor can provide to you within his / her knowledge and with the use of a team of experts he / she has available for his / her work.
As a business owner or an executive, you have great plans to move your business forward, you’re thinking about new projects. You spend weekends at work, and your well-done work fulfils you with satisfaction. Your employees trust you, you often know them personally, spend a significant part of time with them. You are equally challenging to your business partners and advisers. Today’s business owners expect more than just referrals from their advisers, they expect help in meeting business goals, helping to make decisions about key business issues, and forming visions and business strategies.
At present, we are increasingly confronted with the fact that the auditor, by virtue of his position of independent control and the associated unrestricted access to all information, resources and people, is precisely the finished article that can fulfil the expectations of the client. The business environment is developing very rapidly, is much more complex and exposed to unexpected economic and political influences. The Auditor in his / her role as a Strategic Adviser, therefore, keeps track of everything for you, analyses the potential impacts, and comes up with a solution for you. He does not always have an answer for everything, but is surrounded by tax, law, bankers, insurance brokers, cooperates with an expert institution. With the sharing of best practices with colleagues around the world, the auditor can also recommend appropriate and innovative solutions from abroad.
We could inform you about the possibility of releasing the Czech Crown exchange rate, amending tax legislation, or introducing electronic revenue records, but we regularly go through these topics with personal meetings or the so called “Bilanzbesprechung”. I personally consider the auditor’s importance to the firm as essential, and I am glad that the audit department is becoming a centre of knowledge and advice for clients more and more.