Examine the financial statements and supporting accounting records for the applicable financial year. Agree the reporting framework, responsibilities and audit purpose before work begins.

• Engagement assessment and risk-based planning.
• Testing of material transactions and balances.
• Evaluation of evidence and management responses.
• Reporting after completion of required procedures.

Tailor the engagement to the company’s authority, legal structure, business activity and intended report recipient.

• Current authority acceptance where required.
• Financial year and reporting-purpose review.
• Entity-specific accounting and disclosure matters.
• Agreed deliverables and submission responsibilities.

Review financial statements under the applicable IFRS reporting framework, including significant policies, estimates, presentation and supporting notes.

• Trial balance and general ledger reconciliation.
• Financial position, performance and relevant cash-flow reporting.
• Recognition, measurement and disclosure matters.
• Proposed adjustments discussed with management.

Management remains responsible for the accounts. Preparation assistance and assurance require appropriate scope boundaries and independence safeguards.

Plan procedures around material stock balances, movements, locations and the physical-count evidence available. Trading and manufacturing operations require particular attention.

• Stock records, movements and count documentation.
• Raw materials, work in progress and finished goods.
• Costing, valuation, obsolescence and provisions.
• Goods in transit and period-end cut-off.

Test selected sales, purchases and cross-border transactions, considering recognition, commercial terms and reporting-period allocation.

• Invoices, contracts and transaction evidence.
• Import, export, shipping and logistics documents.
• Goods movement and foreign-currency transactions.
• Sales and purchase cut-off.

Review material customer, supplier, bank and cash balances. Investigate reconciliation differences and relevant financing arrangements.

• Receivable and payable schedules.
• Ageing and subsequent receipts or payments.
• Bank statements, reconciliations and facilities.
• Liabilities, accruals and significant transactions.

Review material shareholder, related-company and connected-party balances and transactions in the financial statements.

• Relationships, agreements and supporting schedules.
• Intercompany reconciliation and unexplained differences.
• Foreign currencies and exchange differences.
• Matters requiring separate transfer pricing or tax analysis.

Examine material assets and the records supporting additions, disposals and accounting estimates. Industrial and manufacturing companies may require additional procedures.

• Fixed-asset register and ledger reconciliation.
• Ownership, existence and supporting invoices.
• Capital expenditure and imported machinery.
• Depreciation, impairment and disposal records.

Where separately within scope, reconcile financial figures with VAT records and Corporate Tax information. Accounting profit, taxable income and VAT turnover need not be identical.

• Revenue timing, provisions and depreciation.
• Non-deductible expenses, exempt income and tax losses.
• VAT adjustments, foreign exchange and related parties.
• Transfer pricing and free-zone tax treatment.

An audit does not replace a separate Corporate Tax computation or establish QFZP eligibility.

Communicate relevant control weaknesses, accounting issues and practical observations arising from the engagement. Resolve outstanding matters before final reporting.

• Management queries and significant observations.
• Evaluation of remaining evidence and adjustments.
• Report issuance under professional requirements.
• Online reference checks for reports issued by Brainstorm.