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Audit company to resume

Verified 15 December 2021 - Legal and Administrative Information Directorate (Prime Minister)

The diagnostic and evaluation phase allowed you to take stock of the company and probe its strengths and weaknesses. If you have written a letter of intent demonstrating your interest in the company, you must now perform company audit to ensure the reliability of the information provided by the assignor.

Recovery Audit (or acquisition audit) is an expertise performed by one or more professionals.

It is a prerequisite for any resumption of company.

You can measure the following by performing an audit:

  • Potential difference between the information provided by the assignor and the actual value of the company
  • Company compliance legal, social, accounting, fiscal and even environmental
  • Risks of company activity which justify the implementation of

Upon completion of the audit, the auditors will provide you with a report that summarises the company's strengths, reservations and possible solutions.

In practice, the objective of the takeover audit is to obtain a clear, detailed and reliable vision of the company for establish a solid basis for negotiation.

Audit and company diagnostics.

  • Diagnosis aims to gather information and perform a first level of analysis necessary to make a decision on whether to proceed with the recovery project.
  • Audit is a more in-depth analysis that ensures that there is no gap between the outcome of the diagnosis and the reality of the company.

The audit cost, most often at your expense, depends on the following:

  • Number of audits ordered : legal, accounting, fiscal, social, etc.
  • Level of expertise of auditors : accountants, auditors, lawyers, notaries
  • Elements defined in the mission letter : purpose of the mission, scope of intervention, duration, responsibility of the auditor, audit confidentiality, etc.

Generally, the hourly rate of a council varies between €70 and €150HT: titleContent, but it can be much larger depending on the size of the firm you are seeking.

In order to have a comprehensive view of the company, the completion of an acquisition audit involves several legal, accounting, tax and social audits.

1- Legal audit

The legal audit ensures that the company complies with all its legal obligations.

The legal professional (lawyer, notary) in charge of the legal audit may perform the following tasks:

  • Analyse open contracts (lease, suppliers, customers, insurance): do the contracts comply with the applicable law? Do they contain penal and exclusivity clauses? Are they likely to be terminated soon?
  • List rights and obligations : What are the company's various patents, trademarks or properties? Does it have an operating licence? Has it agreed to security on his property (pledge, pledge, mortgage)?
  • Monitor compliance : does the company operate in accordance with health, customs, environmental and city planning regulations?
  • Review pending litigation : is the company the subject of one or more lawsuits? Has she ever been convicted and why?

2- Accounting and Financial Audit

The accounting and financial audit The purpose of this study is to examine accounting records and data (balance sheets, income statements, working capital requirements, cash, etc.) to measure the company's financial position.

The main task of the auditor or auditor in charge of this audit is to list the following:

  • Theactive corresponds to all rights and property owned by the company.
    The auditor shall verify the presence of the assets on the balance sheet.
    Distinctive the fixed asset intended to serve the company in a sustainable manner (commercial funds, leasing rights, equity securities, furniture, materials) and circulating assets which is available in the short term (receivables, stocks, cash).
  • The liability corresponds to the total indebtedness of the company to associates (contributions in share capital, advances in current account of partner) and in respect of third parties (loans, vendor debts, tax debts, staff salaries).

3- Fiscal audit

Fiscal audit is to monitor the company's compliance with its fiscal obligations (declarations, payments, etc.) and to anticipate the risks associated with fiscal control.

The tax lawyer in charge of the audit shall determine the various charges to which the company is subject: tax on profits, VAT, territorial economic contribution, social contributions, participation on wages, etc.

At the end of this audit, the specialist may propose possible tax optimisations that would allow the company to reduce the amount of its tax.

4- Social audit

Social audit is to check the regularity of employment contracts and to ensure that all employees' rights have been respected (payment of wages, paid leave, respect for breaks, etc.).

The audit lawyer, who is most often a labour lawyer, is also asked to consider the following:

  • Compliance with collective agreements and company agreements
  • Subscription of insurance or insurance contracts for the benefit of employees (death, disability, illness)
  • Human resources policy (recruitment, training, skills management)
  • Compliance with health and safety requirements
  • Work-related accidents and litigation pending before the courts

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