Annual financial statements and consolidated financial statements
Statutory annual- and consolidated financial statements
The obligation to audit annual financial statements and consolidated financial statements is regulated by the Austrian Enterprise Code ("UGB", "Unternehmensgesetzbuch"). A legally required audit is decisively shaped by size criteria covered by the Code or other directly applicable regulations in various special laws such as the Austrian Demerger Act ("Spaltungsgesetz") and the Austrian Private Foundations Act ("Privatstiftungsgesetz").
Examples of companies subject to statutory audits:
- Public limited companies (regardless of size)
- Medium-sized and large limited liability companies
- Private foundations
Voluntary annual audit and review
Even if there is no legal obligation to examine the annual financial statements, owners often wish to have the statements audited by an independent expert in order to increase the certainty of the company's net assets, financial position and results being presented accurately.
The scale and scope of the auditors' report determine whether it is a voluntary audit or a review.
With regard to the process, the same strict national and international guidelines apply to voluntary annual audits. The review's result is summarised in a so-called audit opinion, as is the case with statutory audits.
In a so-called auditing review, also known as a review, the demands in terms of the depth and extent of the audit procedures are lower. Here, the auditor's overall statement is not formulated as an audit opinion and therefore has less weight.
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