Financial reporting is the starting point of an audit. KPMG is a leading audit and advisory firm in the auditing of annual and consolidated financial statements according to the standards of the Swiss Code of Obligations (OR), IFRS and US GAAP.
The purpose of the business and financial situation analysis conducted in the planning phase is to help us understand our clients' business and financial reporting needs. From these results, we identify the risks which could lead to significant misstatements in the annual report and determine the main focus of our audit.
In the second phase, we analyze the internal control system and test its effectiveness. Here, we primarily concentrate on the main points of our audit identified during the planning phase. The type and scope of the remaining detailed audits are based on the results of prior audits. We use the audit results to draw conclusions for the audit statement and our reports.
