Audit Readiness

An audit readiness intervention can help organizations better anticipate any compliance issues that may arise from an audit or tax authorities’ exam. Being unprepared may see you rushing to have required documents ready on time, struggling to respond to last-minute audit adjustments and reacting late to stakeholder information requests-all of which can lead to unintended and undesirable consequences. 
Readiness interventions help address potential exposures and, wherever possible, improve the outcome of future audits. While these programs are tailored to each clients’ particular setup, the overall goal is to identify potential issues so that you can address and rectify them in plenty of time.

Deloitte’s audit readiness program adequately plans the audit to ensure a more efficient and effective experience. As audits place considerable pressure on deadlines and risk internal financial processes being disrupted, an experienced team closely collaborates with your employees to improve your company’s internal controls and financial organization.

Through our extensive knowledge network, we can share the latest technical insights and best practices with your employees. This hands-on support can boost the quality of your internal controls.

In which circumstances may you want to be audit-ready?

• Your company is obliged to the obligations and requirements to prepare and file statutory annual accounts and audit requirements in Luxembourg
  Preparation and filing of the statutory annual accounts
• Your company is not subject to any obligations and requirements under Luxembourgish laws
  
  There are many reasons why you may want to be audit-ready when there is no regulatory requirement for you to do so. As a business leader, you increasingly need to build trust and demonstrate transparency throughout your organization.
  
  Or there may be specific clauses in potential deals with interested parties or compliance contracts with stakeholders. Essentially, an audit clause gives the counterparty the authority to review another party’s records in order to fulfill their contractual obligations.
  

What is the added value of having reliable financial information?

Clients	Investors	Banks	Suppliers	Public Agencies
Projects requiring a sound financial situation Contract terms allowing for audits	Merger and acquisition (M&A) activities Initial public offering and share issuance Project funding Requests for subsidies	Debt and bond issuance with covenants Borrowing base Other types of financing	Contract terms allowing for audits Projects requiring a sound financial situation	Tax inspections Enforcement of financial information Subsidies

How can we help?

Deloitte can implement a tailored audit readiness project in your environment and with hands-on support to enhance your finance function’s skills, substantiate your annual report/statement, and ensure a smooth audit.

Identify key topics that are relevant to auditors to structure a smooth audit

	Understand the entity and its environment Be able to provide a company background to auditors, such as business operations, entity ownership, governance structure, etc.
	Internal controls Understand the policies, processes, standards, and procedures for your organization and your technical area.
	Supporting documents Whether upfront or during their intervention, be always prepared to provide auditors with adequate supporting documentation and explanations to support and corroborate the entries booked.