Audit

 

The certification of the annual financial statements by an auditor is a guarantee that the provider of the financial statements has compiled with the professional standards and the relevant legislation regarding the statements made in the financial statements. This credibility is a real benefit to the entity. This is particularly noticeable when an external investor is involved, borrowing is conducted, or the auditor’s report of a subsidiary is approved by the group auditor. 

Our audit services are used by companies for which compliance with the law is important. But it is also important that the professional reputation of the chosen auditor should increase confidence in the entity’s financial statements. 

Guarantee and safety 

As a member of MGI Worldwide international accounting network, we are required to meet the high standards of services and professional quality set by the organization. Only a few audit firms in Hungary undergo such a high level of international quality control. As an audit firm our professional work is supervised by the Chamber of Hungarian Auditors. In the course of our previous quality controls, MGI-BPO received the best rating. 

MGI Worldwide is a member of the Forum of Firms. Forum of Firms is an association of international networks of firms that perform transnational audits. The members are networks that can provide cross-border audit services. 

Yet one of the most reliable features of the professional standard provided by MGI-BPO is the acceptance of the industry. This is reflected in the fact that the auditor’s reports we issue are accepted internationally by other auditors. 

An example of why you should choose us: 

Our client was a startup company in Hungary. A venture capitalist asked MGI-BPO to perform a full financial due diligence of the startup prior to the investment, based on which the venture capitalist decided to invest in the startup. Following the investment, the owners appointed MGI-BPO as the Company’s auditor. In the 4th year after the investment, our Client was acquired by an international company. During the transaction, the owners were assisted by our tax advisory service. The value of the transaction exceeded HUF 5 billion. 

International experience and background 

 Thanks to our membership in the MGI Worldwide network, we can perform the audit of international groups in addition to individual financial statements, which – beside the audit of subsidiaries in other countries – may include the audit of group reporting. As a member of MGI Worldwide accounting network, we are experienced in auditing the Hungarian subsidiaries of international companies, which we can perform in both Hungarian and English. During the audit of subsidiaries, we usually communicate with the parent company and the group auditor in English. According to the needs of the group auditor, we can also audit the consolidation package according to other international accounting standards, such as e.g. IFRS or USGAAP. 

An example of why you should choose us: 

An international group of companies was audited by one of the BIG4 audit companies. The Hungarian subsidiary was small compared to the size of the group that the parent company allowed them to appoint an auditor other than the group’s auditor. The subsidiary could only appoint an auditor that is also present at international level and their auditor’s report is accepted by the parent company’s auditor. This is how the subsidiary appointed BPO-AUDIT as their auditor. 

Additional audit services 

Auditors may perform additional services to their clients only to a limited extent, while maintaining their professional independence. This can only be done if these services are provided by another team separate from the audit team. While maintain the independence criterion, it is possible to make use of our additional specialized professional services as well. 

When is an audit mandatory? 

 When is an audit mandatory? Who appoints an auditor? Who can be appointed as an auditor? An audit may be prescribed by several laws in Hungary, but the first and most important of these is the Accounting Act. A company that is required to be audited under the Accounting Act, must appoint an auditor to audit its annual and abbreviated financial statements. 

Learn more about auditing requirements in this article