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Advanced Auditing

Notes 10.5.2 Organization, Documentation and Conclusions of the
Independent Financial Audit

The independent financial audit is performed on the basis of contract between the trustee
undertaking and the statutory auditor as a natural person, or through the undertaking of the
auditor, or the specialized audit firm by identifying the statutory auditor responsible for the
independent financial audit. Statutory auditors with whom a contract for independent financial
audit is signed may be dismissed only if appropriate reasons exist. Difference in opinions with
regard to the accounting treatment or the audit procedures are not appropriate grounds for
dismissal. The audited trustee-undertaking and the statutory auditor notify within one month
the Commission for Public Oversight of the Statutory Auditors for the dismissal or resignation
of the statutory auditor, submitting as well the reasons for that action.

The acceptance of obligation for performance of independent financial audit is documented
with a letter of acceptance of audit engagement. The content of the letter is determined under the
International auditing standards. The documentation of the independent financial audit and the
procedures on its implementation are performed in compliance with the requirements of the
legislation in force and the International auditing standards. The management of the undertaking
presents to the statutory auditor the financial account prepared by it, ready for issuance of an
audit report. The financial account is presented together with the report on the activity and any
other information, which the management bodies submit together with the audited account, as
well as a confirmation or representation letter signed by the management in compliance with
the International auditing standards.
1. The conclusions of the statutory auditor after the independent financial audit are reflected
in the audit report.
2. The audit reports are prepared in compliance with the International auditing standards.
3. (Repeal, SG No. 54/2010)

4. The audit report must contain clearly expressed opinion on the audited financial accounts
as a whole.
5. The opinion expressed on the financial account is verified by the:

(a) Statutory auditor, if the audit report is issued personally by the auditor – with
signature and seal of the auditor;
(b) Specialized audit firm, if the audit report is issued on its behalf – with the signature
of the person representing the firm, with the seal of the specialized audit firm, and
with the personal signature of the statutory auditor, responsible for the audit.
6. The signature and seal are affixed on the audit report and the accounting balance, expense
and income statement/income statement, and the own capital statement, for which the
independent audit opinion has been expressed.
The seal of the statutory auditor has an ellipsoid form. The name, family name and the number
of the statutory auditor in the register of the statutory auditors of the Institute of Certified
Expert – Accountants, are written on the seal. The specialized audit firm uses for the purposes of
audit a seal with an ellipsoid form. The following is written on the seal: “specialized audit firm”,
the company name and registered office, and the number in the register of the statutory auditors
of the Institute of Certified Expert Accountants. The personal seal of the statutory auditor and
the seal of the specialized audit firm are used for verification of the audit of the financial
accounts and in other cases envisaged by the law.

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