Financial audit

I. Entities that at the balance sheet date exceed the limits of two of the following criteria set out in OMFP 3055/2009:
1) total assets – 3,650,000 euro
2) net turnover – 7.300.000 euro;
3) average number of employees – 50;
Prepare annual financial statements including:
1. Balance sheet;
2. Profit and loss account;
3. Informative date
4. Situation of fixed assets;
5. Statement of changes in equity;
6. Cash flow statement;
7. Notes to the annual financial statements;

II. Entities that at the balance sheet date do not exceed the limits of two of the criteria set out in OMFP 3055/2009 prepare abbreviated annual financial statements that include:
1. Balance sheet;
2. Profit and loss account;
3. Informative date (code 30)
4. Statement of fixed assets (code 40)
5. Statement of changes in equity (optional)
6. Cash flow statement (optional)
7. Notes to the annual financial statements;

In the case of newly-established entities, they may prepare for the first reporting year abbreviated annual financial statements or annual financial statements; For the second reporting year, the indicators from the previous year’s financial statements and the indicators determined on the basis of the accounting data at the end of the current year are analysed and the annual financial statements are prepared according to the size criteria recorded;

III. Entities which in the previous financial year simultaneously met the following two size criteria:
– net turnover of less than €35,000 inclusive;
– total assets of less than 35,000 euro;
may opt to apply the simplified accounting system (according to OMFP 2239/2011), drawing up simplified annual financial statements including:
1. Balance sheet;
3. Profit and loss account;
4. Informative data
5. Situation of fixed assets;

The size criteria shall be determined on the basis of the indicators determined from the annual financial statements, respectively the trial balance, closed at the end of the previous financial year, using the exchange rate communicated by the NBR valid at the end of that financial year;

Entities that at the end of the previous financial year exceed the limits of one or both criteria apply the OMFP 3088/2009 regulations from the first accounting report made in the financial year following the one for which the criteria were exceeded;

Deadlines for submission of annual financial statements:
1. For commercial companies, national companies, autonomous regions, national research and development institutes – 150 days after the end of the financial year;
2. For the other persons provided for by the Accounting Act – 120 days after the end of the financial year;

Entities that have not carried out any activity since their incorporation until 31 December must submit an affidavit within 60 days of the end of the financial year;

The objective of an audit of financial statements;
The objective of an audit of financial statements is to enable the financial auditor to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with an applicable financial reporting framework;

Expressing an opinion on the financial statements;
Where the auditor expresses an opinion on a complete set of (general purpose) financial statements prepared in accordance with a financial reporting framework designed to achieve fair presentation, the auditor applies ISA 700 (Revised): “The Independent Auditor’s Report on the Complete Set of General Purpose Financial Statements” for standards and recommendations on the matters the auditor considers in forming an opinion on such financial statements and on the form and content of the auditor’s report;

Tax consultancy

• Certification of annual corporate tax returns;
• Advice on taxes and duties;
• Advice on tax legislation and legislative news;
• Preparation of annual corporate tax returns;
• Tax optimisation and tax solutions to reduce payment obligations;
• Avoidance of double taxation of non-resident income;
• Assistance and representation of clients during controls carried out by the competent authorities;
• Assistance with VAT compensation and refund;
• Regularly informing clients about new financial and tax regulations;
• Consultancy in the buying and selling process;
• Advice on international import-export transactions;

Out-of-court expert accounting

Professional Standard No 35: CECCAR’s expert reports;

Accounting expert reports are means of evidence that can be used in cases that require strictly specialized knowledge on the part of persons who are qualified as accounting experts; Accounting experts ordered ex officio or accepted at the request of the parties in the investigation and trial phases of civil and/or commercial cases, whether or not attached to a criminal trial, are called judicial accounting experts; All other expert opinions are extrajudicial;

Out-of-court expert opinions are carried out by accounting experts outside the regulated procedures for the resolution of cases subject to a court verdict (they are carried out outside a court process); Out-of-court expert opinions are requested by the parties who choose their own accountants and set the objectives to be met by them;

Practice has shown that many actions addressed to the judicial authorities are a consequence of the defects and lack of operability in the system of documents and evidence; In such a situation, the economic operator initiating the arbitration or court action must be certain that the documents and records on which the action is based are legal, correct, accurate and accurately reflect the economic, financial, management and contractual situation of the establishment;

A means of substantiating and ensuring the quality, reality, accuracy and legality of the information on which the arbitration or court action is based is the amicable accounting expertise requested by the management of the economic agent who is to initiate the court action;

Internal Audit – Internal Control

By Law no. 672/2002 on public internal audit and Government Ordinance no. 37/2004 for the modification and completion of the regulations on internal audit, the internal audit of public entities was regulated, regarding the formation and use of public funds and the management of public assets, as a functionally independent and objective activity;

The law includes the following categories of public entities: public authority, public institution, autonomous directorate, national company or corporation, commercial company in which the State or an administrative-territorial unit is the majority shareholder and which has legal personality;

The objectives of the internal public audit, according to Article 3 of the Law, are:
– Objective assurance and advice, designed to improve the systems and activities of the public entity;
– To support the achievement of the public entity’s objectives through a systematic and methodical approach that evaluates and improves the effectiveness of the management system based on risk management, control and management processes;
The scope of internal public audit includes:
– Financial activities or activities with financial implications carried out by the public entity from the time of commitment to the use of the funds by the final beneficiaries, including funds from external assistance;
– The constitution of public revenue, i.e. the authorisation and establishment of debt securities and the facilities granted for their collection;
– Administration of public assets, as well as the sale, pledge, concession or lease of assets in the private or public domain of the State or of administrative-territorial units;
– Financial management and control systems, including accounting and related IT systems;

The specific internal audit objectives for economic entities in the public sector or public domain will be based on a common framework developed by the Ministry of Public Finance and the Romanian Chamber of Financial Auditors;

Personnel and payroll services

• Drawing up payrolls;
• Preparation and filing of tax forms;
• Preparation of employee statements;
• Drawing up termination of employment contract forms;
• Transmission to Revisal of employment contracts, additional acts and termination of employment reports;
• Completion of sick leave forms and their calculation;
• Recording and calculation of rest leave days;
• Performing salary calculation, processing and checking data entered into the system;
• Preparation of salary statements;
• Drawing up payment lists for salary advances and settlements;
• Calculation and preparation of accounting notes related to salaries;
• Preparation and submission of payroll tax returns;
• Drawing up payment orders for the transfer of salary-related contributions;
• Preparation and filing of tax forms;
• Drawing up and submitting declarations on staff entitlements obligations;
• Advice on the preparation of personnel files;
• Preparation and submission of tax forms;
• Assisting the client in the event of a control;

PFA services, Sole Proprietorships, Family Businesses and NGOs;

• Declaration 220 on estimated income;
• Statement 200 on the income earned;
• Receipts and Payments Register;
• Inventory Register
• VAT statement (300) monthly or quarterly depending on the PFA’s option or on the income achieved;
• Tax Registration Statement/Statement of Particulars (070);
• Declaration 394 on supplies and purchases made in Romania;
• Summary declaration on EU supplies/purchases of goods (390);
• Submission of declarations to the financial administration in Bucharest – sector in which the PFA is registered;
• Payment orders for advance income tax, payroll tax and contributions to the social security budget and special funds, regularization of tax on earned income;
• Advice on the preparation of primary supporting documents;

Related services and other insurance commitments;

An engagement to perform agreed-upon procedures (ISRS 4400) involves the auditor in performing certain procedures on individual items of financial data (for example, trade payables, accounts receivable, purchases from related parties, and sales and profits of a segment of an entity), on a component of the financial statements (for example, a balance sheet), or even on a complete set of financial statements;

The objective of a commitment on agreed procedures
● The objective of an agreed-upon procedures engagement is for the auditor to perform the procedures in the nature of an audit to which the auditor, the entity and any entitled third parties have agreed, and for the auditor to report on the actual findings;
● Due to the fact that the auditor provides a report on the actual findings of the agreed procedures, no assurance is expressed; Instead, users of the report evaluate for themselves the procedures and findings reported by the auditor and draw their own conclusions from the audit;
● The report is addressed strictly to those parties who have agreed on the procedures to be performed, as other parties may misinterpret the results because they do not know the reasons for performing the procedures;

General principles of an agreed-upon procedures commitment;
● The auditor must comply with the Code of Ethics for Professional Accountants issued by the International Federation of Accountants (IFAC); The ethical principles governing the auditor’s professional responsibilities for this type of engagement are:
►Integrity;
►Objectivity;
►Professional competence and due attention;
►Confidentiality;
►Professional conduct;

Examples of agreed procedures that our company can perform
A. limited examination assignments (reviews);
B. Examinations based on agreed procedures;
C. Measures for compiling financial and accounting information;
D. Audit of consolidated financial statements prepared in accordance with group policies;
E. Review quarterly, half-yearly and annual financial statements;
F. Limited examination missions;

Company start-ups:

FREE CONSULTING FOR THE START-UP OF YOUR FIRM

We offer free consultancy for setting up a new company: what is the most advantageous legal form for you, what status to choose and what documents are required;

Audit European funds

In the Official Gazette; No. 163 of 6 March 2014, the CAFR Decision No. 5/2014 approving the Cooperation Protocol concluded between the CAFR and the Ministry of European Funds on the organisation and conduct of financial audit activity for European funds and other non-reimbursable funds from other donors was published;

„ART. 2
(1) The list of financial auditors, natural and legal persons, who meet the requirements of the Cooperation Protocol concluded between the Chamber of Financial Auditors of Romania and the Ministry of European Funds on the organisation and conduct of financial audit activity for European funds and other non-reimbursable funds from other donors, set out in Annex No 2, which is an integral part of this Decision, is hereby approved.”;

Our company is on the list of financial auditors legal entities approved by CAFR at position 182;

We have experience in auditing projects financed by structural funds, having audited more than 50 projects on PHARE, POSDRU, POSMEDIU, POR and POSCEE programmes;

Accounting

• Recording of primary documents in the accounts;
• Recording of fixed assets, calculation and recording of fiscal and accounting depreciation;
• Recording in the accounts all transactions relating to the company’s assets and liabilities (fixed assets, current assets, liabilities, equity);
• Drawing up the trial balance;
• Setting monthly and quarterly payment obligations;
• Preparation and submission of monthly, quarterly and annual tax returns within the time limit set by law;
• Preparation and submission of annual financial statements, i.e. balance sheet, profit and loss account, notes to the balance sheet prepared in accordance with the Accounting Law No 82/1991;
• Refacere evidenţe accounting, establish component solduri;
• Keeping the client informed and up to date on legislative developments;
• Valuation of assets;
• Analytical and synthetic records of customers, suppliers;
• Organisation of management accounting;
• Preparation of the balance sheet;
• Preparation of the Journal, Inventory, House Register and Ledger Register;
• Compilation of the Purchase Journal and the Sales Journal;
• Preparation of the tax register;
• Drawing up the revenue and expenditure budget;
• Stock recording and management;
• Preparation of consolidated financial statements (if applicable);
• Accounting records of operations in the case of mergers, divisions or dissolutions of companies;
• Bookkeeping for financial and banking institutions;
• Assisting and carrying out the inventory procedure;

Personnel and payroll services

• Drawing up payrolls;
• Preparation and filing of tax forms;
• Preparation of employee statements;
• Drawing up termination of employment contract forms;
• Transmission to Revisal of employment contracts, additional acts and termination of employment reports;
• Completion of sick leave forms and their calculation;
• Recording and calculation of rest leave days;
• Performing salary calculation, processing and checking data entered into the system;
• Preparation of salary statements;
• Drawing up payment lists for salary advances and settlements;
• Calculation and preparation of accounting notes related to salaries;
• Preparation and submission of payroll tax returns;
• Drawing up payment orders for the transfer of salary-related contributions;
• Preparation and filing of tax forms;
• Drawing up and submitting declarations on staff entitlements obligations;
• Advice on the preparation of personnel files;
• Preparation and submission of tax forms;
• Assisting the client in the event of a control;