Audit Readiness

Solutions

Audit Readiness

Get ready for a more efficient and effective audit!

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.

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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

 

 

 

Clients

 
  • Projects requiring a sound financial situation
  • Contract terms allowing for audits

Investors

 
  • Merger and acquisition (M&A) activities
  • Initial public offering and share issuance
  • Project funding
  • Requests for subsidies

Banks

 
  • Debt and bond issuance with covenants
  • Borrowing base
  • Other types of financing

Suppliers

 
  • Contract terms allowing for audits
  • Projects requiring a sound financial situation

Public Agencies

 
  • Tax inspections
  • Enforcement of financial information
  • Subsidies

 

Benefits to being audit-ready

While a statutory audit is an obligation for many companies to prove their compliance with regulations, it is also an opportunity for a company to assess its activities and financial health, develop a strategy, and reassure investors. An audit readiness assessment can provide the following benefits:

Prepare for a statutory audit

  • ● Ensure your reporting are compliant with the latest regulations.
  • ● Review your internal controls to avoid surprises during the statutory audit and reduce the number of samples tested by your auditors, freeing up your time.
  • ● Review your annual accounts to ensure all information is correct and reconciled.

Finance health check

  • ● Ensure your financial information is correct, allowing you to prove your company is healthy and reassure potential investors and your executives.
  • ● Ensure you can present accurate financial information at any point in the financial year for ad-hoc requests from management or third-parties, such as banks, tax authorities, suppliers, etc.

A necessary step for strategic decisions

  • ● Ensure your financial reports are always accurate, allowing you to make the right strategic decisions.
  • ● Decrease your risks in case of an M&A or divestiture process, as the value of your company and assets is supported by reliable data.
  • ● Enable your finance department to always have the correct information on hand to accurately assess any situation.

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.

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Contacts

Luc Brucher

Luc Brucher

Partner | Public Sector & Healthcare Leader

Luc has over 20 years of experience in audit and advisory services mainly in the commercial, industrial and public sector. Luc is part of the Deloitte’s multidisciplinary service line dedicated to com... More

Bettina Werner

Bettina Werner

Director | Assurance

Bettina is a director within our Assurance Services team and has over 13 years of experience working on audit and assurance projects within three Deloitte offices. Her areas of expertise are accountin... More