Audit and assurance

Financial statement audits are performed in accordance with a specific financial reporting framework, including IFRS or the Bulgarian National Financial Reporting Standards for Small and Medium-Sized Enterprises, and the legislation applicable in Bulgaria. Our independent approach and qualified staff give clients assurance that their financial statements are technically correct and consistent with evolving practice.

We review financial statements in accordance with the international auditing standards applicable to review engagements.

Our procedures are determined by the requirements of those international standards, professional organisations and legal provisions and, where appropriate, by the terms of the review engagement and the reporting requirements. The objective of a review is to provide moderate assurance that the information under review is free from material inaccuracies, departures and inconsistencies, expressed in the form of negative assurance.

Global Audit Services EOOD performs reviews in computerised information environments, particularly for medium-sized enterprises. Our methodology and the tools we use to provide these services are distinctive and based on leading technologies. We have developed a detailed methodology for reviewing information systems, and our engagement teams include specialists who understand your electronic platforms and the associated software systems.

If you need an audit of financial statements prepared under requirements other than IFRS or national standards, we can offer a range of special-purpose audit services. Like a financial statement audit, these services involve examination and a conclusion based on audit evidence. They are particularly useful when auditing public organisations whose reports must meet specific requirements.

Special-purpose engagements may involve an audit or review of:

Financial statements prepared in accordance with a comprehensive basis of accounting other than IFRS or national standards.

Specific accounts, components of accounts or items in financial statements.

Compliance with contractual terms.

Summarised financial statements.

Prospective financial information is based on assumptions about possible future events or actions by an entity. It is subjective, and its preparation requires considerable judgement. Through examination procedures, we gather and assess evidence as to whether:

Management’s best-estimate assumptions are reasonable and consistent with the purpose of the information.

The prospective financial information has been properly prepared on the basis of those assumptions.

The information is appropriately presented and all material assumptions are adequately disclosed, including a clear indication of whether they are best-estimate or hypothetical assumptions.

The prospective financial information is prepared on a basis consistent with the historical financial statements, using appropriate accounting principles.

In these engagements, we use accounting knowledge and expertise, rather than audit expertise, to collect, classify and summarise financial information. This normally turns detailed data into information that is easier to manage and use. Compilation services may include preparing financial statements or collecting and summarising other financial information. This type of service does not provide assurance on the information. The accountant is not required to verify its completeness or accuracy. Nevertheless, it can help you organise and analyse financial information more effectively.

Internal audit is an independent function that examines and evaluates an organisation’s activities in support of three principal objectives: effective and efficient operations, reliable financial reporting, and compliance with applicable laws and regulations. It is one of the controls used by a company’s management. It also has a distinct role in helping to measure and evaluate other controls. Internal auditors therefore need to understand both their own control function and the nature and scope of other controls.

To optimise the value and effectiveness of internal audit, we develop a thorough understanding of your organisation’s objectives; the risks specific to its business; your risk management priorities; the relevant legal and economic environment; and the needs of stakeholders, including shareholders, management and employees. We then offer individual solutions designed to improve the company’s internal audit function.

We can advise and assist with the development of internal audit methodologies, risk management and the training of internal auditors. We can also analyse the company’s need for an internal audit department and propose an appropriate delivery model. Depending on its needs, this function may be performed in-house by a dedicated department or by an external provider.