Network (auditing)
In the field of auditing , a network is understood to mean the permanent cooperation of legally independent auditors and / or auditing companies for the common pursuit of economic interests.
Legal basis
A network is regulated in Art. 2 No. 7 of the 8th EU Directive on final audits. Thereafter, it is a collaborative, broader structure that aims to share profits or costs, or where members are linked through shared resources such as ownership, control, management, quality assurance measures or procedures, business strategy, branding, or significant parts of the professional resources are. In German law, it has been implemented in Section 319b of the HGB . According to this, a network exists when people work together for a certain period of time in pursuit of common economic interests.
Persons can be natural and legal persons under German, but also foreign law. A co-operation in the professions can, but must mean no joint practice. Cooperation of whatever kind is sufficient. The activity can extend to all agreed activities, in addition to the examination also e.g. B. on tax, corporate and legal advice. The pursuit of common economic interests goes beyond an office community or joint investments. The cooperation must be geared towards increasing the professional success of all those involved in the professional activity. It must also be of a certain duration ; joint audits are not sufficient to establish a network. In practice, u. a. the joint use of a uniform brand, the use of uniform quality standards and joint training and further education.
consequences
Auditors are not allowed to review financial statements that members of the same network have helped to create. In addition, there are other reasons for exclusion, which are regulated in detail in § 319b HGB. There is a rebuttable presumption for some reasons for exclusion.
motivation
The market for final exams is dominated by the Big Four . The main reason for this is that globally active companies need an auditor at every location who works according to uniform standards. In order to be able to offer this service as well, medium-sized auditing companies form networks.
The Big Four are also organized internationally as networks. The member companies (usually one per country) are legally independent of each other for reasons of liability.
Types of networks
Basically, three types of networks can be distinguished:
- the networks of the Big Four with one society per country
- Networks of larger medium-sized companies in which one company operates through subsidiaries in several countries, but also works in an international network (e.g. Rödl & Partner )
- Classic networks of medium-sized auditors in which every single company is a member, although there can be several network companies per country. Often, but not always, a common brand name of the company is put in front of it, or there is a reference to membership in the network, e.g. B. Warth & Klein Grant Thornton .
literature
- Jens Poll: IDW handbook for the management of small and medium-sized WP practices. Volume 2: Forms of Cooperation: Models of Practice and Networks. IDW Verlag, 2012, ISBN 978-3-8021-1864-7 .
Individual evidence
- ↑ Helmut Ellrott et al. (Ed.): Beck'scher balance sheet commentary. CH Beck, 2012, ISBN 978-3-406-59392-5 , § 319b HGB.
- ^ Alliance against great auditors. In: Wirtschaftswoche. February 4, 2011, accessed January 13, 2013.
- ↑ Small auditors really big. from: handelsblatt.com , May 10, 2004, accessed January 13, 2013 .
