Checking consolidation papers
The auditor pays particular attention to the calculation of:
- Goodwill arising on acquisition and consolidation
- Pre-acquisition and post-acquisition profits
- Minority interest
- Treatment of intercompany profits in stocks
- Agreements of intercompany indebtedness
- Necessary cancellations in respect of intercompany cash in transit
- Turnover, excluding group trading
- Necessary adjustments in respect of group companies with different accounting period end.
- Taxation
The consolidated accounts must comply with all relevant accounting and legal requirements.