Auditing is fun when it leads to success! And a successful auditor is someone who can audit a company’s financial reporting and interpret the findings reliably for the future. Brought to the point, auditing means: reviewing conscientiously, analyzing creatively, advising successfully – independently, neutrally, and confidentially.
Generating growth by changing your perspective
In terms of your income and expenses, we do not look at all of your data in detail. We analyze your overall economic position, draw up measures and alternative actions, accompany you through to a successful sale or acquisition and research the options for a realignment. Trust is good, but control is better.
In accordance with our Winsulting® service philosophy we view the challenges and available solutions from various perspectives. Our experts constantly swap notes, keep their eyes on the big picture and find the best possible solution for you, which they elaborate in detail, making sure you get the biggest slice of the pie possible.
“We know how the pie is divided up – we also know how big your slice can be!”
Audit of the annual financial statements
The core product of our work is auditing the annual financial statements as this is the essential task defining the profession of auditing. An engagement to have the separate financial statements of a company or the consolidated financial statements of a group of companies audited by an external and independent auditor is issued either to meet a legal requirement or is done voluntarily. The findings are recorded in an auditor’s report with an attached audit opinion (* unless refused) and gives weight to the accuracy of the statements made in the financial reporting. The methodology applied, the tools and instruments used and the quality of the work are always identical and are reflected in the audit opinion. Whether the entity is a small company that requests a voluntary audit or a large company that is subject to a mandatory audit by force of law is of no consequence.
An independent audit underscores the veracity of the statements made in the financial statements and any additional voluntary or mandatory elements, such as a management report or the disclosures required by Sec. 53 HGrG, and fosters confidence among the users about the overall statement presented by the financial reporting. In sum, the financial statements must present a true and fair view of the assets and liabilities, financial position and financial performance of the company. All audits of the figures and disclosures in the balance sheet and income statement as well as the supplementary disclosures in the notes have one thing in common: they give weight to your financial reporting and generally facilitate decision-making and corporate governance. Whether the underlying purpose is to apply for a bank loan, to restructure the company, conduct a corporate acquisition or win new customers is of no consequence. In each case you can present yourself as a reliable business partner with whom a long-term relationship can be established and are not merely an enterprise based on pipedreams.
Furthermore, all such audit engagements can be made on a voluntary or ad hoc basis or even on a voluntary basis for just certain elements of the financial reporting. Due to the different requirements imposed by the law or by contract, requests are becoming increasingly frequent for audits of just elements or excerpts of financial statements that have been compiled on different reporting dates or different accounting standards (e.g. a formation audit pursuant to Sec. 33 AktG, audit of a securities prospectus pursuant to IDW S4, audit of reporting packages, etc.) in addition to audits of complete sets of financial statements.
Financial statement audits à la Gehrke Econ – what we deliver:
– Mandatory audits of medium and large sized stock corporations and limited partnerships pursuant to Sec. 316 et seq. HGB
– Mandatory audits of consolidated financial statements pursuant to HGB
– Audits pursuant to the Act on Publication Duties for Non-Corporate Bodies (Publizitätsgesetz)
– Audits of public-sector enterprises pursuant to the Act on Public Budgets (Haushaltsgrundsätzegesetz )
– Audits of separate and consolidated financial statements within the state health insurance system (GKV-System)
– Voluntary audits of separate and consolidated financial statements applying Secs. 317 et seq. HGB
– Compiling informative audit reports
– Acting as independent experts in the field of auditing
– Auditing selected elements of the financial statements
An IT audit can help to provide better insight into the databases used. Thanks to the advance of digitization an increasing volume of data is now recorded that, if analyzed correctly, can be of great benefit to corporate governance. At the same time there is a risk that one loses sight of the relevant points and the actual goal of the enterprise. This risk, and the associated risk of making the wrong business decisions, rises exponentially if the data basis is insufficient.
These audits can focus on the original software or the entire IT system. These software audits include an attestation based on the desired objectives of the audit (e.g. German GAAP for computer-based systems (GoBD) or the GDPR. External certification of your software makes a major contribution to bolstering your market position and is an important element of your internal quality assurance. We therefore provide assistance with your IT projects, from drawing up the spec sheet to introducing or replacing existing IT systems and are able to assess the data migration and quality of the set up from a professional perspective.
IT audits à la Gehrke Econ – what we deliver:
– Project-related IT audits and audits of individual computer-based processes and methods (IDW AuS 850, 860)
– Software audits (IDW AuS 880) / Software certifications
– Audits of conformity with German GAAP for computer-based systems (GoBD)
– Drawing up process documentation
– Big data analytics
In addition to mandatory or voluntary audits of financial statements, our auditors also conduct voluntary or mandatory special audits required by the law. These additional audits contribute towards the growing need for information, such as obtaining relief under the renewable energy act (EEG) or issuing letters of compliance for goods and repackaged items brought into the free market.
Other audits à la Gehrke Econ – what we deliver:
– Audits of trusts and foundations
– Formation audits pursuant to Sec. 33 AktG
– Audits pursuant to Sec. 16 MaBV (Real Estate Brokers and Developers Regulation)
– Audits of financial investments pursuant to Sec. 34 f GewO in conjunction with Sec. 24 FinVermV
– Audits of the Duales System (Grüne Punkt IDW AuPS 9.950.3)
– Audits pursuant to § 11 VerpackG
– Audits of compliance management systems (IDW AsS 980)
– Audits pursuant to the Renewable Energy Act (EEG)/Audits pursuant to the Cogeneration Act (KWK-G) pursuant to IDW PS 970
– Special audits of internal control systems (ICS) pursuant to IDW AuS 982
– Attestations of yield and certifications for wind turbines
As an external service provider, Gehrke econ performs internal audits for medium-sized firms and groups of companies. Among other things, our audit services help to identify risks and uncover irregularities or clarify any cases of fraud as well as make an assessment and provide assurance of internal control processes. If requested, we conduct internal audits and other audit procedures on the basis of a regular cycle or as an ad hoc special investigation in the case of suspicious activities.
In addition, we participate in investigations of fraud and embezzlement and offer a comprehensive suite of consulting services on how to set up preventive control mechanisms in the company.
Internal audits à la Gehrke Econ – what we deliver:
– Performing the internal audit for companies and groups as an external department
– Examining embezzlement / clarifying cases of fraud / performing forensic accounting
– Ad hoc investigations into cases of fraud
Gehrke Econ is happy to assist you at any time in the function of consultant, neutral valuer or as an arbitrator in the event of a dispute. In addition, our auditors can determine the value of your enterprise. This considers corporate transactions, restructuring, admission or departure of new shareholders, as well as the most sensible structure for estate planning and under family law. In cooperation with Corporate Finance in Hanover, we identify potential acquisition targets and can initiate the first contact.
Business valuations à la Gehrke Econ – what we deliver:
– Drawing up expert valuation reports for companies as a whole or groups of companies, distinct operations and interests in associates in accordance with the applicable version of IDW S1
– Drawing up the (integrated) planning calculations which are used as a basis for all business valuations: projected income statements, balance sheets and cash flow statements/liquidity planning
– Comparing the results of different valuation methodologies (capitalized earnings method, DCF method, net asset valuations, etc.)
– Assessing the value of alternative investments
– Valuations pursuant to Sec. 99 ff. BewG for tax purposes
Gehrke Econ has played a successful supporting role in numerous corporate transactions. One of our core competences is drawing up integrated planning statements that can be used to determine business values in keeping with the requirements. Thanks to the interdisciplinary cooperation between our specialists, we are well equipped to handle any commercial, tax or legal challenges.
With support from our cooperation partner, Corporate Finance Hanover, we can offer you the entire portfolio of M&A services from just one source. In the case of a sale or acquisition of a company, we can also perform the legal, contractual, tax and financial due diligence prior to signing the deal. If requested, we can also search for a suitable buyer and facilitate the negotiations.
Restructuring and business rescue
In times of crisis we will also be at your side and work out suitable countermeasures and alternatives in collaboration with you. If requested, we will outline strategies for repositioning your company.
We draw up potential concepts with you (such as restructuring plans, business continuity and insolvency plans) and throw light on the key performance aspects of a restructuring. Providing practical support with implementation is part and parcel of the service.
In cases of doubt, we will assess, together with you, whether the criteria for opening insolvency proceedings in accordance with IDW S11 have been met and issue an attestation in keeping with Sec. 270b InsO with the goal of initiating the necessary measures and determining the date of insolvency.
Restructuring and business rescues à la Gehrke Econ – what we deliver:
– Creating restructuring concepts pursuant to IDW S6
– Creating going concern forecasts
– Creating insolvency plans
– Creating liquidation concepts
– Assessing the criteria for opening insolvency proceedings pursuant to IDW S11
– Creating attestations pursuant to Sec. 270b InsO