Encountered errors in the audit of the consolidated accounts

Encountered errors in the audit of the consolidated accounts

Encountered errors in the audit of the consolidated accounts

This article is based on an interview with Frédéric Lepoutre in 2012. Frédéric is a specialist in consolidation, IFRS and corporate tax. We asked him a couple of questions about his experience with the errors that groups who consolidate encounter in the audit phase.

As an auditor, what are the 5 errors that you encounter the most at groups who consolidate?

I see 2 types of errors: technical errors and errors of value estimation. The most frequent errors that I have encountered are:

How to prevent these errors?

Using a consolidation software application allows to prevent problems, however the software needs to be exploited in the right way, with a non-accounting tool (Excel) to frame the topics correctly. It is also important to anticipate as much as possible the difficult topics with the auditor, to avoid long discussions in the closing period.

More pragmatic, to avoid error situations, the following things are necessary:

All of this helps to gain time in the audit phase.

What was the biggest error that you have encountered and what was the impact?

We had one case in which a client had forgotten to register a goodwill amortization in consolidation. The entry was simple on itself but it had a big impact on an important figure, which changed a lot of numbers.

How can software help?

I would say that a software allows to secure the whole process. When a professional software is used, the auditors have a sort of guarantee on the quality of the financial figures.

Share this article :

Discover Sigma Conso Consolidation & Reporting

Sigma Conso Consolidation & Reporting is a unified consolidation and reporting software application. It is web native and provides complete data traceability and powerful internal and external reporting functionality.

Recent articles