External audit process is carried out by an independent auditor, who examines the financial statements and accounting records in order to give an opinion on the fairness of the financial statements and accounts, and its commitment to the International Financial Reporting Standards, IFRS.

An external audit is based on examination and is comprehensive of the entire scope of the accounting, internal control and other factors. Samples are taken based on risk and relative importance. An external audit may also include reviews or agreed-upon services.

The role of the Auditor

Many of our clients need financial information certified by an independent external auditor to ensure its health when making various decisions based on it. Such decisions may be in regards to attracting investors, obtaining loans, or the decisions of the official government authorities for tax purposes.

Auditor's Report

The auditor's report represents the official view, whether issued by the internal auditor or an independent external auditor. And is an essential tool when reporting financial information to users, especially in business, and provide assurance to users of this information to make decisions based on the results of the audit.

The prevailing general belief is that the financial information without the presence of an external auditor's report is worthless in terms of substance for the purposes of investment.

The Minister of Finance issued Decree Law No. 8089 dated March 15^th, 1996, stating that “reports of the experts have to attach the permits accounting and financial statements for all financial firms, and all branches of foreign companies, and companies of persons (in certain cases)." As noted by the same provisions of the decree that "abstinence or delay in signing the reports mentioned to the data and permission within the legal period lead to the imposition of fines for lack of documents." On this subject also Article 7 of Law No. 27/80 that "should the companies under the system of auditors under the Code of Commerce that accompanied its statement to the Chamber's annual financial report of the relevant income tax auditor with the explanations that belong to him."