OUR SERVICES

"OUR TEAM OF PROFESSIONALS THAT RESPOND TO YOUR NEEDS AND EXCEED YOUR EXPECTATIONS."

AUDITS

Audits of Financial Statement:

The users of the financial statements (shareholders, general managers, banks, etc.,) have to be certain that the information provided by the financial department of the entity presents the actual situation, so that fundamental decisions related to operation activities, investment, and financing can be made in order to comply with the direction intended by the shareholders.

Our job as independent auditors is to carry out an appreciation and understanding of the entity’s operations to evaluate risks and its effects in order to efficiently focus and execute audit tests, and based on those devise an opinion on whether the financial statements have been prepared, in the relevant areas, in accordance with a frame of reference generally accepted in each country, such as IFRS or US GAAP. Our work methodology is in full compliance with the independence and work quality guidelines from the International Standards on Auditing, ISA, issued by the International Federation of Accountants, IFAC.

Our methodology comprises carrying out external auditing based on risks, aiming at adding value to the entities requiring our services. For example:

A business approach which helps companies achieve their goals. The risk-based audit comprises different elements of an audit:

  • objectives,
  • processes,
  • risks,
  • control,
  • tests,
  • reports.

The relevance of any audit test can be seen in relation to the entire risk management framework, due to the relationships established between the risks universe and auditing.

An inclusive audit approach that facilitates management actions: the firm is closely involved in the risk process (thus measuring its appetite) through risk workshops, risk and control self-assessments, assurance activities, etc.

An optimal level of assurance that supports the business objectives completion: risk-based auditing is more efficient since it manages audits in high-risk areas, unlike those that do not represent greater risks.

A risk-based audit ensures that the most important risks for the organization (linked to key objectives) are audited and that the management assumes responsibility for the mitigation and monitoring of these high-risk areas on an ongoing basis.

Better prioritization of findings and recommendations: findings and recommendations can be classified to provide the greatest added value in terms of mitigated risks related to the achievement of business objectives.

With this practice, risk mitigation improvement: the risk-based audit highlights crucial risks that are inadequately controlled or over-controlled, thus improving risk mitigation.

INTERNAL AUDIT

The objective of an internal audit is to analyze and improve the controls and performance of the operations of an entity. With scope in the operations of the organization with interdisciplinary skills, focused on the revision of present and future of the operations, the main audience is the board of directors. The activities are carried out under the International Standards for the Professional Practice of Internal Audit of the Institute of Internal Auditors, IIA. The emphasis is to strengthen and protect the value of the entity.

Our firm provides services that maximize the use of available resources and runs a monitoring operation through an outsourcing service, performed by senior level professionals, in order to ensure an ongoing quality assessment providing timely feedback to the board of directors on subjects such as not-covered risks and improvement opportunities that could pose significant economic losses for the entity.

According to the Institute of Internal Auditors, IIA, internal auditing is defined as: "An independent and objective assurance and consulting activity designed to add value and improve the operations of an organization. It helps an organization achieve its objectives by providing a systematic and disciplined approach to assess and improve the effectiveness of risk management, control and governance processes.” Currently, an internal audit has become a fundamental component for good corporate governance, risk management, effective internal control, and efficiency in the operations of any organization.

The Internal Audit performance is interrelated with different areas of the organization and the purpose of its recommendations is to contribute to the achievement of objectives, without losing its independence and objectivity in the operation analysis process.

TAXES

In full accordance and observant of tax regulations of each country, our fiscal-matter expert team is dedicated at providing assistance in the design of tax strategies, maximizing savings opportunities, and ensuring fiscal and legal compliance in order to avoid foreseeable difficulties, as well as aiding with any eventual review of the auditing body.

Our firm carries out cases and opinions analysis, advices on the best tax regime to be registered in the fiscal entity, and assists in planning, tax compliance assessment, transfer prices, advices on qualification of special regimes, recovery of tax credits, and in monthly, quarterly and annual reviews.

We have provided support to organizations at initiating process in the qualification of special tax regimes, such as Decree 29-89 issued by the Ministry of Economy, qualification process, registrations to the corresponding entities, current account management, and with import and export regime of Decree 29-89.

CONSULTING

Internal Control Evaluation:

The establishment of appropriate risks policies and procedures for organization management is essential in order to achieve the outlined objectives in its strategic plan. Senior management is responsible for ensuring and maintaining an effective internal control system, integrating the first line of defense.

Our team thus prepares the evaluation of the internal control of the business cycle as such. Our methodology is based on the International Standards of Internal Audit issued by the Institute of Internal Auditors, IIA, which includes the following steps:

Planning

  • Interviews to determine processes and sub processes involved in each reviewed cycle.

Field Work:

  • Preparation of control matrices, showing activities, controls, and risks.
  • Compliance with audit tests to validate control effectiveness, based on interviews conducted on processes and sub processes.
  • Identification of opportunities to improve internal control (findings).

Reporting

  • Communication of the findings through an internal audit report.
  • Preparation of a monitoring plan to tackle internal control weaknesses.

COSO Framework

Our firm prepares a review based on the framework of internal control suggested by The Committee of Sponsoring Organizations of the Treadway Commission, COSO, taking into account the elements that are part of this structure, evaluating if such are being applied in the company in order to guide to organizations in the design and implementation of an internal control system that responds to the needs and risks which they face on a daily basis.

Set of policies and procedures issued by the management and senior management of the entity to ensure the achievement of these three objectives:

  • Reliability of the financial information system
  • Effectiveness and efficiency of operations
  • Compliance with laws, norms, and regulations

The Integrated Internal Control Framework is comprised of 5 components, 17 principles and focus points that present the primary characteristics of each component.

Control Environment

The first component is the Control Environment which comprises norms, processes, and structures that constitute the basis for developing an internal control in the organization, including revision of the philosophy for its management, the accepted risk, integrity and values ethics, and the environment in which it acts. This includes elements such as the existence of policies and procedures, code of ethics, audit committee, internal audit department, and line of complaints among others. It is important to highlight that this component creates a directive that supports risk assessment for the fulfillment of the entity's objectives, performance of control activities, use of information and communication systems, and management of supervisory activities.

Risk Assessment

Risk Assessment component identifies the possible risks associated with the achievement of the objectives of the organization. The objectives must exists before senior management can identify the potential events that affect its execution. The organization must anticipate, know, and address the risks they face in order to establish mechanisms that identify, analyze, and reduce such. This is a dynamic and iterative process that creates the basis for determining how risks are to be managed.

Control Activities

Control activities are defined as actions established through policies and procedures that contribute to ensuring that management instructions are carried out to mitigate risks with potential impact on the objectives. These are established in order to help ensuring risk responses are carried out effectively. Our firm evaluates the culture of control and the design and effectiveness of the controls created by the organization.

Information and Communication

Information and communication component refers to the way in which the departments of the organization identify, capture, and exchange information.

Effective communication must occur in a broad sense, streaming in all directions within the entity. The application and security controls of the organization’s information systems will also be evaluated.

Monitoring Activities

Supervision and monitoring refers to the activities that assess whether the components and principles are present and functioning in the entity.

Management is responsible for monitoring; internal audit plays an important role in this process.

Balanced Scorecard:

Balanced Scorecard can be used as a strategic decision making framework for companies and thus a strategic management system may be applicable. The analysis is carried out based on the tool’s four perspectives: financial perspective, customer perspective, internal processes perspective, and organizational capacity perspective (learning and growth). A large number of companies make decisions based on their financial results but do not take intangible assets into consideration. The study focuses on showing such specific objectives and provides a general analysis on the BSC tool usage.

Entities received detailed information of BSC tool perspectives. Abstract concepts such as the organization’s vision, mission, and values are broken down into actionable objectives. Strategy mapping is created aiming for all the organization’s stakeholders understand the consequences of their decisions.

Based on the model of its creators, Dr. Robert Kaplan and Dr. David Norton, usage and implementation of the Balanced Scorecard tool, BSC, is supported, thus developing a new system to measure the entity’s performance. This allows senior management to receive a comprehensive overview, by which they will obtain not only traditional financial information, commonly used as decision making basis, but receive other sources of information such as intangible assets, indicators, and analysis provided by the BSC tool. The result of the analysis of the BSC implementation is provided.

Enterprise Solutions:

The financial statements result from various transactions recorded by different departments of the entity, which are processed in accordance with the established classification criteria, and then are grouped and presented to provide useful information in order to analyze the financial situation of the entities, the performance of their activities, and the efficiency in the use of cash.

The absence of well-defined accounting policies and procedures could affect the degree of integrity and consistency of the financial information that reaches the final reporting. In contrast, our associates have vast experience in the management of key systems, such as JD Edwards, SAP, Microsoft Dynamics, QuickBooks, among others. Therefore, having the knowledge of the different accounting software and by extensive learning of the entity's operations, our firm can evaluate its effectiveness and recommend adequacy of accounting policies and procedures that provide assurance in the generated financial information.

Training

Over the years our team has provided training to organizations on topics such as taxes, accounting systems, compliance, IFRS, IFRS for SMEs, among others.

IFRS training program is developed in 7 modules:

  • Status and operations of the International Accounting Standards Board (IASB)
    • Existing IASB standards
    • Framework
  • Application of IFRS in the world
    • Usage of IFRS in the world
  • Presentation and earnings
    • Presentation of financial statements - International Accounting Standards (IAS) 1
    • Revenue from contracts with customers - IFRS 15
    • Accounting policies, changes in accounting estimates, and errors - IAS 8
  • Accounting for assets and liabilities part 1
    • Property, plant and equipment - IAS 16
    • Intangible assets - IAS 38
    • Investment property - IAS 40
    • Impairment of asset value - IAS 36
    • Interest costs - IAS 23
    • Accounting for government grants and information to be disclosed on government aid - IAS 20
    • Inventories - IAS 2
    • Construction contracts - IAS 11
    • Leases - IAS 17
    • Non-current assets held for sale and discontinued operations - IFRS 5
  • Accounting for assets and liabilities part 2
    • Fair value measurement - IFRS 13
    • Financial instruments - Presentation - IAS 32
    • Financial instruments - IFRS 9
    • Financial instruments: disclosure - IFRS 7
    • Share-based payments - IFRS 2
    • Provisions, contingent assets and contingent liabilities - IAS 37
    • Facts after the balance sheet date - IAS 10
    • Employee benefits - IAS 19
    • Income tax - IAS 12
    • Agriculture - IAS 41
    • Exploration and evaluation of mineral resources - IFRS 6
  • Group accounting
    • Consolidated financial statements - IFRS 10
    • Separate financial statements - IAS 27
    • Business combinations - IFRS 3
    • Investments in associated companies and joint ventures - IAS 28
    • Joint agreements - IFRS 11
    • Disclosure of interests in other entities – IFRS 12
    • Effects of changes in foreign currency exchange rates - IAS 21
    • Financial information in hyperinflationary economies - IAS 29
  • Disclosure rules
    • Cash flow statements - IAS 7
    • Information to be disclosed about related parties - IAS 24
    • Earnings per share - IAS 33
    • Intermediate financial information - IAS 34
    • Insurance contracts - IFRS 4
    • First-time adoption of IFRS - IFRS 1
    • Operating segments - IFRS 8

The compliance training program is divided into 20 Modules:

  • Module 1. General Compliance Concepts
  • Module 2. Business Ethics
  • Module 3. Essential elements of a Compliance Program
  • Module 4. Standard UNE-ISO 19600 Compliance Management Systems. Guidelines
  • Module 5. Leadership and Compliance Culture
  • Module 6. Corporate Social Responsibility and Good Governance
  • Module 7. Compliance Risk Management
  • Module 8. Compliance Policies
  • Module 9. Communication, Training and Awareness
  • Module 10. Supervision, Monitoring and Information
  • Module 11. Channels, Investigations, Disciplinary Measures and Incentives
  • Module 12. Corporate Compliance- Prevention of Criminal Risk of Legal Entities
  • Module 13. Bribery and Corruption Prevention
  • Module 14. Prevention of Money Laundering and Terrorism Financing
  • Module 15. Competition Defense
  • Module 16. Prevention of Market Abuse
  • Module 17. Protection of personal data and information privacy
  • Module 18. Due Diligence Procedures and Conflict of Interest Prevention
  • Module 19. Consumer Protection
  • Module 20. Compliance and New Technologies