Auditing – Wedding & Cie.

 

As an auditing company that specialises in mid-sized companies and businesspersons, together with their specific high requirements, we conduct all business-related audits, and especially annual and consolidated financial statement audits, through WEDDING & Cie. GmbH Wirtschaftsprüfungsgesellschaft.

Annual and Consolidated Financial Statement Audits as per the German Commercial Code (HGB) and IFRS

Whether an audit of the annual financial statements is a statutory requirement or conducted voluntarily, it is often viewed – quite unjustly – as a bothersome duty.

In fact where ambitious companies are concerned, both the statutory audit and the voluntary audit of annual financial statements provide numerous opportunities to have a detailed assessment of the operational processes and achieve permanent improvements there.

Thanks to the many years of experience our professionals have gained in the field of auditing, and that also primarily with the “Big 4” auditing firms, they have a great degree of know-how at their disposal and provide high quality auditing services. The basis for our work here comprise the ISAs and the additional standards issued by the German Institute of Auditors (IDW).

The audit professional in our practice with responsibility for your audit personally manages and supervises it during the complete audit execution and is available as a direct contact person for you. This permits any critical and urgent issues to be discussed efficiently and in a solution-driven manner, while any decisions required can be taken promptly.

 

Together with the auditing of annual and consolidated financial statements prepared in accordance with the German Commercial Code (HGB), we also offer the auditing of annual and consolidated financial statements prepared in accordance with IFRS. This option is requested more and more frequently in international contexts.

In addition to the business-related auditing of companies in the industrial and commercial area, we also have extensive sector-specific experience in providing advice to and auditing financial services institutes, securities services companies and financial investment brokers, as well as foundations and companies in the health care industry.

Advice to and Audits of Financial Services Institutes, Securities Services Companies and Financial Investment Brokers

The financial services institutes registered with the German Federal Financial Supervisory Authority (BaFin) as well as the financial investment brokers authorised in accordance with Sec. 34f German Trade, Commerce and Industry Regulation Act (GewO) are subject to special supervisory duties.

When preparing their annual financial statements, financial services institutes have to comply with the applicable provisions in the German Commercial Code (HGB) and the German Accounting Directive for Banks and Financial Services Providers (RechKredV) and they are regarded as being a large stock corporation for the purpose of preparing and auditing their annual financial statements. This classification occurs regardless of their size and activities.

We have gained many years of experience in this area, also when dealing and communicating with the respective supervisory authorities, among others.

Against the background of the increasingly stricter and more extensive requirements from the European and national supervisory authorities, we see it as our task to provide advice-based services so as to ensure your processes comply with the rules and regulations. We support and accompany you during the application phase, or also subsequently as a compliance officer.

We conduct statutory audits while observing the current statutory and supervisory law requirements. Doing so, we take into consideration that these activities have to be incorporated into your everyday work and performed efficiently.

 

With the implementation of the MiFID II/MiFIR requirements, securities services companies have had to comply with higher conduct and organisational duties since 3 January 2018 than was the case before that. We provide comprehensive advice to you on all questions related to this subject. Our key competencies here include the conducting of audits in accordance with Sec. 89 German Securities Trading Act (WpHG).

For financial investment brokers authorised as per Sec. 34f German Trade, Commerce and Industry Regulation Act (GewO), we conduct audits in accordance with Sec. 24 German Financial Investments Brokerage Ordinance (FinVermV).

Advice to and Audits of Financial Services Institutes, Securities Services Companies and Financial Investment Brokers

The financial services institutes registered with the German Federal Financial Supervisory Authority (BaFin) as well as the financial investment brokers authorised in accordance with Sec. 34f German Trade, Commerce and Industry Regulation Act (GewO) are subject to special supervisory duties.

When preparing their annual financial statements, financial services institutes have to comply with the applicable provisions in the German Commercial Code (HGB) and the German Accounting Directive for Banks and Financial Services Providers (RechKredV) and they are regarded as being a large stock corporation for the purpose of preparing and auditing their annual financial statements. This classification occurs regardless of their size and activities.

We have gained many years of experience in this area, also when dealing and communicating with the respective supervisory authorities, among others.

Against the background of the increasingly stricter and more extensive requirements from the European and national supervisory authorities, we see it as our task to provide advice-based services so as to ensure your processes comply with the rules and regulations. We support and accompany you during the application phase, or also subsequently as a compliance officer.

We conduct statutory audits while observing the current statutory and supervisory law requirements. Doing so, we take into consideration that these activities have to be incorporated into your everyday work and performed efficiently.

 

With the implementation of the MiFID II/MiFIR requirements, securities services companies have had to comply with higher conduct and organisational duties since 3 January 2018 than was the case before that. We provide comprehensive advice to you on all questions related to this subject. Our key competencies here include the conducting of audits in accordance with Sec. 89 German Securities Trading Act (WpHG).

For financial investment brokers authorised as per Sec. 34f German Trade, Commerce and Industry Regulation Act (GewO), we conduct audits in accordance with Sec. 24 German Financial Investments Brokerage Ordinance (FinVermV).

Auditing of Foundations

In Germany, the laws related to foundations are not regulated uniformly on a federal national level, and result instead from the various foundation laws in the individual German Federal States. Most of the foundation laws include a statutory basis that stipulates the auditing of the annual accounts or annual statement of the foundations. The audits as such are either mandatory or conducted at the discretion of the foundation’s supervisory authority. In both cases, the foundation supervisory authorities are largely authorised to permit the conducting of audits by third parties – with statutory auditors often specifically named here.

Thanks to the many years of experience we have gained in the auditing of foundations, we are available as an auditing company to support and assist you with any questions relating to all aspects of auditing foundations.

Scope of the Audit

Together with assessing the propriety of the accounting records, the annual statement and the balance sheet with a separate reporting of the reserves, the scope of the audit is usually extended to also include the following audit-related content due to the various foundation laws:
Together with assessing the propriety of the accounting records, the annual statement and the balance sheet with a separate reporting of the reserves, the scope of the audit is usually extended to also include the following audit-related content due to the various foundation laws:

  • The allocation of funds in accordance with the foundation’s articles
  • The maintenance of the foundation assets
  • The propriety of the management

Furthermore, the provisions in the foundation’s articles, as well as the general requirements of the German Commercial Code (HGB) and the stipulations from the German Institute of Auditors (IDW) contained in the IDW Auditing Standard 740 “Auditing of Foundations” have to be taken into consideration accordingly as required.

In addition to the auditing of the annual statements, we are also at your side to answer all questions that arise in relation to the structure and organisation of the foundation.

Special Audits (as per Stock Corporation Law)

Whether they occur in the context of mergers, profit transfer agreements, capital increases through contributions in kind, or a squeeze-out, we are your competent expert for the execution of the obligatory audits linked to these, as well as for the expert reports to determine the share transfer ratio, the cash settlement, or the corporate value, and/or the value of any contribution in kind.

 

In this area, we have many years of extensive experience dealing with such transactions. This has been gained in a range of differing sectors and companies, as well as when working together with several commercial, legal and, where required, technically-oriented project participants, in addition to arbitration tribunals and courts of law, for instance, during proceedings.

Financial Due Diligences

When corporate transactions occur, we receive an assignment either from the seller or the buyer to provide a financial due diligence, as well as a tax due diligence, which is frequently prepared together with our tax advisory company Wedding & Partner Steuerberatungsgesellschaft mbH. Once the aims and priorities are defined by the client commissioning the report, information of relevance to the decision is gathered and analysed, while potential risks are identified and documented. When requested, we also participate in the development of appropriate solutions.
In this area, we have many years of extensive experience dealing with such transactions. This has been gained in a range of differing sectors and companies, as well as when working together with several commercial, legal and, where required, technically-oriented project participants, in addition to arbitration tribunals and courts of law, for instance, during proceedings.

 

Thanks to the many years of experience our professionals have gained in the fields of auditing and tax consulting in various sectors and companies, we offer our clients high quality auditing services with solution-driven advice.

Corporate Valuations

The question of the current and future value of a company regularly arises in the context of business transactions or succession planning. The valuation of companies is frequently undertaken by auditors due to their specific specialist professional knowledge.

In the corporate valuation area, we have gained extensive experience in the valuation of small and mid-sized companies with their unique individual aspects, as well as in the valuation of very large corporations. The German Institute of Auditors (IDW) has developed a standard for the valuation of companies. This standard (IDW S1) is also accepted and recognised beyond the auditing profession as the yardstick for corporate valuations. We determine valuations for companies in accordance with the IDW Standard S1, as well as on the basis of sector-specific and tax-based valuation methods.

Advising on and Auditing the Internal Control System (ICS) J-SOX and the Tax Compliance Management System (Tax-CMS)

The statutory provisions that listed Japanese parent companies must fulfil frequently lead to a situation whereby their German subsidiaries are verifiably required to maintain a documented internal control system and have it audited. We are happy to support you in fulfilling this complex duty, which is frequently abbreviated in accordance with the federal US Sarbanes-Oxley Act as SOX and in Japan as J-SOX. We have extensive experience in implementing such systems, together with their internal and external audits, and are happy to support you from the risk analysis phase to the control documentation (flow charts, process descriptions, risk-control matrix) through to the obligatory management testing.

Also beyond the obligatory SOX structures, a risk analysis and control evaluation can help to reduce financial risks in your company.

Tax compliance represents the internal corporate aim of complying with all taxation duties. This aim is achieved by having a tax compliance management system (Tax CMS), which is an internal control system intended to protect the company and its management bodies from violations of the law and their related consequences. Via our affiliate tax advisory company Wedding & Partner Steuerberatungsgesellschaft mbH, we provide the planning, implementation and ongoing adaptation of a Tax CMS suitable for the company concerned. When a company already has a functioning Tax CMS in place, we conduct effectiveness and adequacy tests of the existing Tax CMS on the basis of the IDW Auditing Standard 980.

Transparency Report as per Sec. 55c German Law Regulating the Profession of Auditor (WPO)