Detailed and extensive standards of auditing
The Institut der Wirtschaftsprüfer lays down detailed and extensive standards
of auditing and reporting. It also sets rules for ethical behaviour and
professional conduct.
In all these respects the German profession can take its
place among the world leaders. In contrast to other countries, the German
auditor is required to prepare a detailed report for management and the
supervisory board on the scope and extent of the audit and its results, and must
also comment on management’s appreciation of the financial position and
prospects of the company as shown in the directors’ report. The requirement is
specified in the Commercial Code, and the Institut der Wirtschaftsprüfer has
issued extensive guidance statements indicating how its members should draw
up such reports.
There is no legally prescribed wording for an audit opinion. However, the
opinion must be easily understandable, must draw clear attention to major
problems – especially those endangering the business as a going concern – and
must confirm that the directors’ report is not misleading.
If the opinion is unqualified, it must state that there are no adverse audit findings and that the
financial statements give a realistic view of the assets, financial and profit
positions of the company.
EU Forecast
euf:ba18e:120/nws-01