 |
Clients |
 |
|
|
|
edding AG
8 January 2007
“The DFK network compares favourably with the “Big Four” in carrying out international audits of middle-sized groups. These are the conclusions of a recently completed audit”, says H-W. Kortmann, partner of ESC, DFK’s member firm in Hamburg, Germany.
 In this particular case the board of edding AG, a public company supplying office equipment, which is listed on the German stock market, decided to change their auditor from one of the “Big Four” firms. When looking for alternatives they invited ESC to tender anticipating their ability to organise the audits of the international subsidiaries as part of the audit of the consolidated accounts. They expected the auditor of the consolidated accounts to have an authentic judgement of the parent company and all of the consolidated subsidiaries as well and being head of all worldwide auditing activities.
With the co-operation of DFK member firms in the UK, Italy, Turkey, France, the Netherlands, Japan and Argentina, ESC was able to present a sustainable proposal within one week. The professional and economic features of the offer and the remarkable speed of response were the main reasons why ESC was elected as auditor of the statutory accounts (German GAAP) and the consolidated financial statements (IFRS).
At the beginning and throughout the whole process ESC insisted on a highquality DFK internal communication and coordination. Main audit fields were discussed by several conference calls before and during the tender process. Special items requested by the German parent company as well as the requirements of ESC as auditor of the consolidated financial statements were forwarded to the DFK auditors by written “auditor’s instructions”. DFK uniform reporting documentation was used and simplified communications. “During the audit process a permanent exchange of important findings and other relevant information was submitted by the DFK members via e-mail enabling ESC to maintain full control of the process and to get decisions from the German client’s board whenever necessary. The client appreciated the tightly system of confirmations concerning the intercompany transactions and accounts.
The audits of all the international subsidiaries were formally finished by discussions either “on site” or by telephone conferences. This enabled the directors of the subsidiaries as well as the local DFK auditors to clearly present the results of the accounting and the auditing work and hence give the CEO of the parent company a direct insight into their operations. The Group CEO and the local directors praised this procedure as a positive and substantial development in the quality of their group accounting and communication. For next year video conferences are being planned by the client.
H.-W. Kortmann: “The board of the German parent company and the directors of the subsidiaries were impressed and positively surprised of the deep understanding of the group’s business the DFK team achieved during that short time and so being able to add real value to the audit work. The main reason for this is the personal sense of responsibility of the DFK partners involved on behalf of their clients; this predetermines the DFK network as auditors and advisers for small and medium-sized international groups and their sometimes very special problems and requirements.”
|
| | |
|
