{"id":29414,"date":"2024-07-19T11:02:44","date_gmt":"2024-07-19T10:02:44","guid":{"rendered":"https:\/\/www.houdart-ac.fr\/our-services\/legal-and-contractual-audits\/services-autres-que-la-certification-des-comptes\/"},"modified":"2025-09-01T16:12:49","modified_gmt":"2025-09-01T15:12:49","slug":"statutory-audit-services-other-than-account-certification","status":"publish","type":"page","link":"https:\/\/www.houdart-ac.fr\/en\/our-services\/legal-and-contractual-audits\/statutory-audit-services-other-than-account-certification\/","title":{"rendered":"Statutory audit \u2013 Services other than Account Certification"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row css=&#8221;.vc_custom_1543241685373{padding-top: 40px !important;padding-bottom: 40px !important;}&#8221;][vc_column][vc_column_text]<\/p>\n<p class=\"lead\">As part of our mandate as <a href=\"https:\/\/www.houdart-ac.fr\/en\/our-services\/legal-and-contractual-audits\/\">statutory auditors<\/a>, we are entrusted with duties beyond the certification of financial statements, aimed at delivering a report that meets specific needs. Given our knowledge of your entity and our approach, we are able to carry out these assignments within the stipulated deadlines.<\/p>\n<p>As with our legal audit missions, in carrying out Other Than Account Certification Services (OTACS), our audit firm adopts an agile and constructive approach, tailored to the organization of your financial management and internal control, in strict compliance with the ethical provisions applicable to us as Statutory Auditors<\/p>\n<h2>Principles Applicable to OTACS<\/h2>\n<h3>The Conceptual Framework<\/h3>\n<p>Entities may entrust their statutory auditors or members of their network with services other than account certification, provided the following conditions are met:<\/p>\n<ul>\n<li aria-level=\"1\">These services are not prohibited by European regulations, supplemented by national law.<\/li>\n<li aria-level=\"1\">The fundamental principles of conduct prescribed by the code of ethics for statutory auditors are respected.<\/li>\n<li aria-level=\"1\">These services are approved by the entity\u2019s audit committee after an analysis of risks regarding independence and, where applicable, the envisaged safeguarding measures.<\/li>\n<\/ul>\n<h3>Ethical principles<\/h3>\n<p>Before accepting an engagement related to OTACS, the statutory auditor must ensure compliance with the following ethical principles:<\/p>\n<ul>\n<li aria-level=\"1\">Non-association with the entity&#8217;s decision-making: the statutory auditor is prohibited from being associated with the management or decision-making of the audited entity, whatever the service provided,<\/li>\n<li aria-level=\"1\">Absence of risk of self-audit: the statutory auditor must ensure that the performance of the planned OTACS would not lead him to express an opinion or or assess elements resulting from services provided by himself,<\/li>\n<li aria-level=\"1\">Non-representation of the entity&#8217;s or its management&#8217;s interests: The statutory auditor is prohibited from representing the interests of the entity or its management through negotiations on behalf of the entity or in the courts.<\/li>\n<\/ul>\n<h3>Link between OTACS and statutory audit<\/h3>\n<p>Some of the missions entrusted to the statutory auditor are closely related to the certification engagement, or even conducted within the framework of it. Additionally, certain interventions have an impact on the certification process as they help reduce the work required for it.<\/p>\n<p>Thus, some OTACS may be considered as contributing to the certification of accounts, according to the analysis by the <a href=\"https:\/\/www.houdart-ac.fr\/nos-articles\/audit\/les-instances-professionnelles-des-commissaires-aux-comptes\/\">H3C<\/a>, particularly:<\/p>\n<ul>\n<li aria-level=\"1\">The limited review of semi-annual accounts,<\/li>\n<li aria-level=\"1\">Certain internal control interventions.<\/li>\n<\/ul>\n<h3>Prohibited Services<\/h3>\n<p>The following non-exhaustive list of services may not be provided to an entity, despite the implementation of safeguard procedures, as they do not comply with the ethical principles mentioned above:<\/p>\n<ul>\n<li aria-level=\"1\">Directly or indirectly contributing to the preparation of financial statements,<\/li>\n<li aria-level=\"1\">Providing legal secretarial services,<\/li>\n<li aria-level=\"1\">Preparing tax returns,<\/li>\n<li aria-level=\"1\">Assisting the entity in a tax audit,<\/li>\n<li aria-level=\"1\">Preparing payrolls or social declarations,<\/li>\n<li aria-level=\"1\">Assisting the entity in an URSSAF audit,<\/li>\n<li aria-level=\"1\">Seeking funding.<\/li>\n<\/ul>\n<h2>OTACS : the auditor&#8217;s involvement in the audit engagement<\/h2>\n<p>The most common missions assigned to the Statutory Auditor that do not involve the certification of accounts are primarily those listed below. These are based on elements that the Statutory Auditor may need to review as part of the audit of financial statements and the process of producing the financial information that feeds them.<\/p>\n<p><b>Audit \/ Limited Review <\/b>: This involves expressing an opinion on accounting and financial information prepared by the entity. This opinion may concern an interim situation, a reporting, forecast statements, etc.<\/p>\n<p><b>Attestations:<\/b> This involves certifying information, whether numerical or qualitative, drawn up by the entity in connection with the accounts or elements underlying the accounts. It may also concern internal control elements relating to the preparation and processing of accounting and financial information.<\/p>\n<p><b>Internal Control<\/b>: This involves issuing opinions and recommendations on internal control related to the preparation and processing of accounting and financial information (compliance with a given reference framework, opinion on the strengths and weaknesses of a system in place or under development&#8230;), which do not cover the statutory audit mission, particularly concerning the correct assessment of the risk of material misstatement or fraud detection.<\/p>\n<p><b>Consultations<\/b>\u00a0: These involve topics related to accounts and financial information and do not constitute an assessment of the advisability of an operation or the achievement of forecasts. These services are commonly practiced in companies to better understand the potential accounting effects of upcoming regulations or contemplated transactions (factual insights on potential accounting treatment in various scenarios, information elements that help the company better understand new texts or new obligations that apply to them\u2026).<\/p>\n<h2>OTACS : Due diligence related to the acquisition or sale of an entity<\/h2>\n<p>In the context of an acquisition or sale project, the company may entrust its statutory auditor (CAC) with the acquisition audit or the vendor <a href=\"https:\/\/www.houdart-ac.fr\/en\/our-services\/due-diligence\/\">due diligence<\/a> required to identify deal breakers and the <a href=\"https:\/\/www.houdart-ac.fr\/nos-articles\/audit\/la-mission-de-due-diligence-et-les-retraitements-de-lebitda\/\">normative adjustments of EBITDA<\/a> or other aggregates.<\/p>\n<p>The investor or company executive may assign this <b>due diligence<\/b> mission to a chartered accountant, but also to their statutory auditor. The mission mainly involves conducting investigations within short time frames and with limited information, to clarify the elements that enable the valuation of a target, and does not constitute a consulting mission.<\/p>\n<h2>OTACS : Involvement of the statutory auditor in capital transactions<\/h2>\n<p>The statutory auditor&#8217;s interventions related to capital operations and the issuance of securities fall within a complex legal and regulatory framework that has undergone numerous changes. When companies do not have a statutory auditor, these interventions are not carried out within the framework of OTACS but by appointing an ad hoc statutory auditor to perform the task in question, in accordance with the provisions of Law No. 2019-486 of May 22, 2019 (<a href=\"https:\/\/www.legifrance.gouv.fr\/loda\/id\/JORFTEXT000038496102\">PACTE Law<\/a>). The main interventions are described below.<\/p>\n<ul>\n<li aria-level=\"1\"><b>Capital increase with suppression of preferential subscription rights\u00a0: <\/b>In all joint-stock companies, a cash capital increase automatically grants existing shareholders a preferential right to subscribe to the new shares. This right aims to provide transparent information on the consequences of the capital increase, particularly regarding dilution or the issue price, so that shareholders can make an informed decision. A statutory auditor is then appointed to prepare a report on the information contained in the Chairman&#8217;s report, and in particular his assessment of the reasons for waiving the preferential subscription rights (DPS), the justification for the issue price of the securities, and the proper presentation of the consequences in terms of dilution for non-subscribing shareholders.<\/li>\n<li aria-level=\"1\"><b>Capital increase through debt offsetting\u00a0: <\/b>the Commercial Code requires the intervention of a statutory auditor when a capital increase is paid up by offsetting against receivables, as well as when it is paid up by offsetting against the subscription to a securities issuance, the primary security of which is a share (e.g. an ABSA). The statutory auditor must verify the accuracy of the financial statements, particularly ensuring that the corresponding receivables are liquid and payable. The legislator&#8217;s aim in introducing these checks is to prevent fictitious capital increases.<\/li>\n<li aria-level=\"1\"><b>Interim dividends <\/b>: Dividends represent the distribution of profits to shareholders and serve as compensation for the risk they have assumed. Dividends are generally distributed after the financial statements have been closed and approved by the Annual General Meeting. They are paid within nine months following the end of a fiscal year. Unlike the distribution of dividends after the fiscal year&#8217;s end, the decision to pay an interim dividend falls under the responsibility of the company&#8217;s manager (Article R 232-17 of the Commercial Code). Therefore, his liability is incurred in the event of errors or faults in the preparation of the accounts, as this could result in the distribution of fictitious dividends. The statutory auditor must ensure, based on an interim financial statement, that the distributable profit is at least equal to the proposed interim dividend.<\/li>\n<li aria-level=\"1\"><b>Issuance of securities giving access to the capital<\/b>: A complex security consists of a primary security to which several rights are attached (such as conversion, exchange, etc.) that allow the holder to obtain a security granting access to the capital. When complex securities are issued with or without maintaining preferential subscription rights, shareholders may face immediate or future dilution of their rights. The role of the statutory auditor\u00a0 is therefore to ensure that they have all the information they need to make their decision, in accordance with legal and regulatory requirements. This risk is heightened by the diversity of complex securities.<\/li>\n<\/ul>\n<h2>The specifics of our approach for implementing OTACS<\/h2>\n<p>As with financial statement audits, the successful execution of OTACS within the required timeframes demands certain technical and interpersonal skills, which are possessed by both our partners and teams.<\/p>\n<p>As briefly mentioned above, the scope of OTACS interventions is broad and requires very different skills depending on their nature: essentially financial and analytical skills for a due diligence assignment, proven legal experience for a complex securities issue, a strong ability to synthesize and analyze for an internal control audit mission, and so on.<\/p>\n<p>In addition to the diversity of skills\u00a0 available within our structure to perform these OTACS, our teams demonstrate agility and responsiveness to adapt to your time constraints.<\/p>\n<p>We adopt a constructive approach with our clients, with the shared objective of prioritizing efficiency and technical quality in execution.[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row css=&#8221;.vc_custom_1543241685373{padding-top: 40px !important;padding-bottom: 40px !important;}&#8221;][vc_column][vc_column_text] As part of our mandate as statutory auditors, we are entrusted with duties beyond the certification of financial statements, aimed at delivering a report that meets specific needs. Given&#8230; <a class=\"read-more\" href=\"https:\/\/www.houdart-ac.fr\/en\/our-services\/legal-and-contractual-audits\/statutory-audit-services-other-than-account-certification\/\">Read more<\/a><\/p>\n","protected":false},"author":3,"featured_media":24935,"parent":24980,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"","_seopress_titles_title":"Other Than Account Certification Services (OTACS)","_seopress_titles_desc":"Discover our statutory audit services beyond account certification: due diligence, internal control, capital transactions, and tailored OTACS support.","_seopress_robots_index":"","footnotes":""},"class_list":["post-29414","page","type-page","status-publish","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.houdart-ac.fr\/en\/wp-json\/wp\/v2\/pages\/29414","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.houdart-ac.fr\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.houdart-ac.fr\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.houdart-ac.fr\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.houdart-ac.fr\/en\/wp-json\/wp\/v2\/comments?post=29414"}],"version-history":[{"count":0,"href":"https:\/\/www.houdart-ac.fr\/en\/wp-json\/wp\/v2\/pages\/29414\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/www.houdart-ac.fr\/en\/wp-json\/wp\/v2\/pages\/24980"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.houdart-ac.fr\/en\/wp-json\/wp\/v2\/media\/24935"}],"wp:attachment":[{"href":"https:\/\/www.houdart-ac.fr\/en\/wp-json\/wp\/v2\/media?parent=29414"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}