Contract review (or DDL – Directly Related Due Diligence) is an “open” assignment that allows you to benefit from high value-added services in the following areas: With regard to the review of contracts, it can be conventionally stipulated that summary statements are prepared in accordance with other standards: it implements an audit approach and working methods that take into account the specific risks and the degree of complexity of each organization. are adapted. Particular account shall be taken of the complexity of information/production systems, the international or non-international nature of activities, etc. In the context of a contract audit, the auditor must: This is called a contract audit, provided that this intervention takes place within a contractual framework and is freely defined between the auditor and his client. Although no longer part of the legal audit, the auditor is required to comply with the professional`s labour standards and code of ethics. Its mission requires the implementation of rigorous due diligence and procedures that provide high value-added services. The various aspects related to the certification of summary opinions submitted to the auditor also apply to the audit of contracts. The auditor must assure shareholders and third parties that the financial statements presented to them give a true and fair view of the company`s performance and financial position. This is called legal review.
Since an auditor must be independent, the auditor cannot be a contract auditor who: The quality of the audit is based on a common desire. There is no good audit if the company does not share. The auditor ensures the security of financial information. The term contractual audit generally refers to a non-legal financial audit. In this sense, it corresponds to an audit of the accounts by a diligent professional to certify the annual financial statements. In principle, the audit of the contract is carried out by an auditor (who can also be an auditor) outside of legal obligations. Nevertheless, the auditor is required to comply with the standards of the profession and ethics. This is called the “independent auditor.” However, once the report mentions the term “audit”, generally accepted auditing standards must be met. On the other hand, if a company appoints a contract auditor, adjustments to the target can be agreed.
An auditor has an obligation of independence. He may not be a judge and a party to the annual accounts which he has drawn up or which he has seen in the course of preparation. This expertise and know-how is unique because financial reporting must take into account legal, tax, regulatory, environmental, governmental and economic aspects. The auditor must be able to mobilize multidisciplinary skills to be able to assess all areas that have a financial impact on the company, including its intangible heritage. When selling a business, pre-verification of the valuation is essential for both the seller and the buyer. In the context of a contractual audit, the conditions of performance of the contract between the auditor and his client are freely determined in compliance with the applicable regulations and applicable auditing standards. The purpose of the mission, the duration of the mandate, the response plan and the budget must be set out in an engagement letter. Finally, it should be noted that, unlike a statutory audit, the contractual audit report is sent to the body that commissioned the audit or the report is sent to shareholders. The company and the auditor must work together, without collusion. A “critical friend” is a true “friend” who is not complacent, who is able to tell truths that are sometimes difficult to hear, while remaining a sincere “friend” in search of solutions.
The auditor is an independent and trustworthy partner that allows the company to improve its financial reporting processes. The legal audit is a task of the auditor, for which he assumes responsibility. Its mission: to certify the company`s annual financial statements and prepare a report. Therefore, this difference in the source of the appointment may affect the objectives assigned to the audit. The examination and analysis of the information shall be carried out according to precise criteria and methods. In fact, it is an approach consistent with the College of Chartered Accountants standard set out in the Auditing Standards Manual. Contractual auditing consists of the verification and control of information on the activity of a company by a professional. The financial audit is the best known of the contractual audits, but there is also the social audit, the legal control, the tax audit.
The contract auditor (as well as the auditor) may be entrusted with the execution of certain orders. These include: The main task of the auditor (CAC) is: – to certify the annual financial statements of the company that uses it by carrying out a legal audit, the procedures of which are strictly defined by law and comply with the applicable standards.– the sincerity, regularity and accuracy of the financial statements and financial statements of the company (balance sheet, profit and loss account, legal notes). Whether in Morocco or France, auditing standards are now inspired by the international auditing framework designed by the International Federation of Accountants (IFAC), an association whose members are professional organizations of accountants. A committee of IFAC, the International Auditing and Assurance Standards Board (IAASB), develops the International Standards on Auditing (ISA), which form this international standard.