Audit
and advisory services

A mandatory audit is required by law: for example, under art. 263 of the Spanish Companies Act (LSC) for companies that, for two consecutive financial years, exceed two of these thresholds: €2,850,000 in total assets, €5,700,000 in net turnover or 50 employees. A voluntary audit is chosen by the entity itself, for example to present to banks, shareholders or buyers. The work and the technical standards (NIA-ES) are the same.

No. The Spanish Audit Act (Law 22/2015 of 20 July) prohibits the auditor from providing the audited entity with services such as bookkeeping or the preparation of financial statements. That is why we only prepare annual accounts for entities we do not audit and, before accepting any engagement, we check that there is no incompatibility.

Yes. We work for companies, foundations, cooperatives and public bodies in every Spanish region. Much of the work is coordinated remotely, and we travel to your premises when the engagement requires it.

Each proposal is tailored: it depends on the size of the entity, the sector, the complexity of its operations and the scope of the work. After an initial conversation we send you a written proposal, with no obligation.

With Spanish regulations: the Spanish Audit Act (Law 22/2015) and the Regulation implementing it (Royal Decree 2/2021 of 12 January), the International Standards on Auditing as adapted for Spain (NIA-ES), the auditing standards for the Spanish public sector (NIA-ES-SP), the Spanish General Accounting Plan (PGC) and the resolutions of the Spanish Institute of Accounting and Auditing (ICAC), the national audit oversight authority.

In an audit of accounts, the auditor expresses an opinion with reasonable assurance on whether the accounts give a true and fair view, applying the NIA-ES. In a review engagement (ISRE 2400) the work is less extensive, based mainly on enquiries and analytical procedures, and the conclusion provides limited assurance. In an agreed-upon procedures report (ISRS 4400) there is no opinion: the auditor performs the procedures that have been agreed and reports the findings so that you or a third party can draw your own conclusions. We can advise you on which one fits your needs in special reports.

Usually a due diligence review, to understand the financial, tax and employment risks before signing, and a business valuation, to negotiate the price on an objective basis. If the transaction is structured as a capital increase, a contribution in kind or a merger, a special report from the auditor or an independent expert may also be required.

The auditor can issue four types of opinion. Unmodified (in Spain, «opinión favorable»): the accounts give a true and fair view. Qualified: they give a true and fair view except for one or more specific matters, such as a misstatement or a limitation on the scope of the work, which are explained in the report. Adverse: the misstatements are so material and pervasive that the accounts do not give a true and fair view. Disclaimer of opinion: the auditor has been unable to obtain sufficient evidence to express an opinion. A qualification is not necessarily serious, but banks, shareholders and public authorities read it carefully; that is why we explain in advance any matter that could give rise to one, so that you can correct it before the accounts are prepared and signed by the directors.

Ideally before the financial year-end. The Spanish Companies Act requires the auditor to be appointed before the end of the financial year to be audited (art. 264.1), and engaging in good time makes it possible to plan attendance at the inventory count, anticipate risk areas and meet the deadlines for preparing, approving and filing the accounts without rushing.

Each engagement has its own list, which we send you at the start. As a guide, we usually request: the trial balance and general ledger, the previous year’s annual accounts, bank reconciliations, inventories of stock and fixed assets, contracts, deeds and relevant minutes for the year, and documentation on loans, grants and litigation. We exchange documentation through secure channels and tell you what is essential and what can be provided later.

Yes. We prepare economic and accounting expert reports for court and arbitration proceedings (quantification of damages and loss of profits, price adjustments, analysis of transactions, insolvency situations) and we appear to ratify them and answer questions from the parties and the court. More information in expert evidence and forensics.

As auditors, we are bound by a duty of professional secrecy regarding all information we obtain in the course of our work (art. 31 of the Spanish Audit Act, Law 22/2015). In addition, we process personal data in accordance with the General Data Protection Regulation, exchange documentation through secure channels and restrict access to the members of the team assigned to your engagement.