Municipal audit

Our municipal audit techniques are based on applicable international audit standards and instructions as published by the Czech Auditor Chamber for purposes of financial audits in municipalities and local governments.
Our audit services are provided in accordance with Act no. 420/2004 Coll., on financial audits in municipalities and local governments. The actual audit is performed in several stages.

Initial audit stage

At this stage, the overall audit plan is approved including specifications of the areas that are to be studied by our auditors. At the same time, we define the schedule of all necessary activities and a detailed timetable.

Main audit stage

At this stage, the audit team focuses on issues specified in Sec. 2 and 3 of Act no. 420/2004 Coll. One of the tasks performed at this point is the review and description of the information and accounting system used. Another step is evaluation of the system’s internal audit and checks. The efficiency of internal control mechanisms is further assessed and tested.
At the same time, the auditor looks at important accounting cases and the organisation’s stocktaking practices and activities. Other processes are tested as well. The auditor develops an interim audit report summarizing the results so far and describing any discrepancies or problems that need to be corrected including suggested corrective measures

Review of annual final accounts and audit report

Before the auditor develops and presents his final report, we check the main ledger balance as of the final accounts day and the continuity of related reports. We always make sure that accounting books show a true and accurate picture of the organisation’s assets, liabilities, net assets and financial results.

Our efforts culminate in the final audit report developed in accordance with Sec. 10 of Act no. 420/2004 on financial audit. The report includes the auditor statement regarding the final accounts.
The client (accounting unit) also receives an auditor letter stating the conclusions for each audited area and suggested measures to correct potential shortcomings.

For more information on municipal audits, please, contact us using this form.