Reporting requirements as active audit for Formaltrade entities:
Mandatory information – *According to the regulation only for Formaltrade entities with the requirement to submit a yearly report:
In case of obligated requirements after confirmed higher financial activity, an national/International prepared accounting group is required to be assigned to conduct an audit of the annual report, accounts, and the management of Formaltrade by the board members.
In local jurisdictions, the network of auditors operates as independent local business units. Nationally/Internationally, the accounting group’s clients are primarily businesses with owners who pro-actively take part in the business and actively perform auditing and consulting services within the sectors of finance and taxation.
In addition to examining the annual report, accounts and management on an annual basis, the company’s representative, will state that the audit should be conducted on a periodical basis to ensure correct current accounting and good information to external interested parties, primarily referring in this connection to Formaltrade activities.
This means, at higher financial activity, that external firm will audit the company’s quarterly reports (in case of additional request by the board) on the basis of the demands that external interested parties impose and the company’s representatives consequently consider appropriate. The external firm considers that in the case of any Formaltrade entity tart of higher financial activity the following areas will be of the greatest interest for clients to Formaltrade and Formaltrade Group board members:
– Income statement – are the correct income and expenses reported for the period.
– Taxes and charges – has the company reported and paid the correct charges.
– Equity – does the company satisfy the requirements imposed by the Companies Acts.
– Assets – are the company’s assets correctly valued, are they under the control of the company.
* Exemption for any auditing only in case of inactivity of a registered entity from financial activities.