Audit

Build trust in your financial statements with value-based auditing

Audit

When a financial statement has been audited, the reader can trust that the information presented is reliable.
The trust that the audit adds to the financial statements is essential for the company’s or organisation’s stakeholders to be able and willing to use the financial data as a basis for decision-making. The audit thus provides the foundation for decisions related to investments, lending, partnership agreements, valuations – and not least, insight into operations for shareholders, citizens, or members.

Audit also creates value internally within the organisation, as it provides management with additional assurance that the compliance elements related to financial reporting are adequate and being followed – including that the financial statements comply with legal requirements.

When we perform an audit, it requires us to have deep insight into the audited company or organisation. We use that insight proactively to provide advice and guidance on the matters we observe. We call this value-based auditing.

In cases where our independence is not compromised, we are happy to offer our expertise in the preparation of financial statements, tax calculations and documentation, accounting assistance, business services and outsourcing, etc.
An overview of all our services can be found here.
 

Who is required to undergo an audit?

Who is required to undergo an audit?

All public limited companies (A/S) and private limited companies (ApS) above a certain size are legally required to have their financial statements audited. The same applies to municipalities, regions, and a number of other public entities and organisations. The legal requirement for audit underscores the importance of ensuring that, as a society, we can trust that the financial statements being prepared are reliable. Even in cases where there is no statutory requirement, many other companies and organisations have chosen to include an audit requirement in their articles of association, and in such cases, an audit must of course be performed. For companies that are not legally or statutorily required to undergo an audit, the need may still arise — for example, due to demands from lenders, grant providers, owners, members, or other stakeholders. For a growing business expecting to seek external financing, bring in new owners, or prepare for a potential sale, voluntarily undergoing an audit can be a very smart move to stay ahead of future requirements.
What is an audit?

What is an audit?

An audit involves an independent party providing a high level of assurance as to whether a financial statement gives a true and fair view. An audit requires that the auditor gains deep insight into the organisation being audited, as well as the market conditions and other relevant factors under which the organisation operates. Based on this understanding, the auditor determines the analyses, reviews, and tests that are necessary in order to express an opinion on the financial statement. When selecting audit procedures and methods, the auditor makes informed judgments about where material misstatements may occur and where the risk of error is greatest. Therefore, an audit does not provide absolute assurance that the financial statements are free from error, but it does provide a high level of assurance that the financial statements are reliable. An audit must be performed by a certified public accountant, typically a state-authorised public accountant, who is independent of the organisation being audited. This independence, along with professional competence, is essential for the credibility of the auditor’s opinion.

Contact us

Contact person

Jakob B. Ditlevsen, BDO

Jakob B. Ditlevsen

Partner, Head of Audit & Assurance, State Authorised Public Accountant
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