Within the framework of the other services than certification of the Accounts (SACC) , Houdart A&C can be engaged to carry out contractual audits, the terms of which are freely agreed between the company and the auditor in an engagement letter, with the aim of issuing an opinion on the accounts or financial elements derived from these accounts in various contexts.
These contractual diagnostic and appraisal assignments may relate to your processes or the financial information you have prepared. The content and precise terms of the assignment are defined together.
Although these engagements do not fall within the legal framework, we are bound by the professional standards and code of ethics of the profession and carry out these engagements with complete independence..
The Context of a Contract Audit
The context in which we may be asked to perform this type of engagement may include, without being exhaustive, the following :
- Audit prior to a valuation of the company with a view to attracting new investors,
- Audit of a group subsidiary in the context of insufficient understanding of its results,
- Audit of a company as part of an investigation into suspected financial fraud,
- Audit as part of a restructuring process,
- Audit prior to the evaluation of the structure and determination of the exchange ratio in the context of a company merger,
- Procedural audit to improve the internal control system,
- Cybersecurity audit to test the quality and security of the IT infrastructure.
The objective of a contractual audit
The objective of this type of assignment naturally depends on the audited subject and the framework of the mission entrusted. However, generally, this type of assignment aims to secure, improve the quality, and increase the efficiency of the financial information production process.
We may be commissioned for a contractual audit in a company that also has a statutory auditor. This is justified by our in-depth knowledge in accounting, tax, legal, and regulatory aspects of certain sectors such as the art and antiques market, the renewable energy sector, family offices, and real estate.
The Particularities of our Contractual Audit Approach
The particularities of our approach to contractual audits are identical to those of our approach to statutory audits:
Agility and Responsiveness
As a mid-sized firm, we can respond quickly to requests to meet our clients’ needs. Our agile structure also allows us to adapt easily to their characteristics, organizational constraints, and changes in the way we conduct our contractual audits.
Proximity and Client Relationship
We prioritize close relationships with our clients while maintaining the independence associated with our role. This trust-based relationship allows us to better understand their challenges and provide attentive service, resulting from constructive exchanges with management and the financial department.
Expertise and Versatility
Our teams consist of staff and partners with extensive experience in the audited clients’ sectors. This technical and sectoral knowledge allows them to adopt an analytical, technical approach and minimize the need for management and the financial department’s involvement in areas where the auditor’s expertise is expected.
Added Value
In a contractual audit mission, it is essential that the added value generated by our work is evident to our clients, which implies a synthetic, precise presentation of our audit findings, providing a clear response to the question that initially prompted the assignment.