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An Audit Procedure is a detailed set of steps that auditors follow to examine a company's financial records and operations. In Belgium, these procedures must align with the Institute of Registered Auditors (IBR-IRE) standards and follow the Belgian Company Code requirements for thorough financial oversight.

These procedures help auditors collect reliable evidence about financial statements, internal controls, and compliance with Belgian tax laws. They might include checking invoices, confirming bank balances, or interviewing staff members. Good audit procedures protect stakeholders by ensuring accurate financial reporting and helping businesses spot potential issues before they become problems.

Use Audit Procedures when your company faces significant financial reviews, regulatory checks, or annual compliance requirements under Belgian law. They're especially important during statutory audits required by the Belgian Company Code, mergers and acquisitions, or when seeking investment funding.

These procedures become crucial during major business changes, suspected fraud investigations, or when preparing for tax authority reviews. Belgian companies with annual turnover exceeding €3.4 million must implement comprehensive audit procedures to meet legal obligations. They're also valuable when expanding operations, switching accounting systems, or responding to shareholder concerns about financial management.

• Substantive Procedures: Detailed checks of financial transactions, including invoice verification, bank reconciliations, and inventory counts. Used mainly for large Belgian corporations.
• Compliance Procedures: Focus on checking adherence to Belgian tax laws, accounting standards, and internal control systems.
• Risk-Based Procedures: Tailored examinations targeting high-risk areas specific to your industry or business model.
• IT System Procedures: Specialized checks for digital accounting systems and automated processes, following Belgian data protection requirements.
• Management Review Procedures: Evaluate executive decisions, financial projections, and governance practices against Belgian corporate law standards.

• Registered Auditors (IBR-IRE Members): Create and execute audit procedures, ensuring compliance with Belgian auditing standards.
• Company Management: Provides necessary documentation and implements recommended changes based on audit findings.
• Internal Audit Teams: Conduct regular checks using these procedures to maintain compliance year-round.
• Board of Directors: Reviews audit results and ensures proper governance of financial reporting processes.
• Financial Department Staff: Prepares documentation and assists auditors throughout the procedure.
• Regulatory Bodies: Monitor compliance and may review audit procedures during investigations or routine checks.

• Company Profile: Gather key business details, including size, industry, and regulatory requirements under Belgian law.
• Risk Assessment: Map out high-risk areas and specific compliance needs for your organization.
• Financial Records: Collect past audit reports, financial statements, and accounting system documentation.
• Internal Controls: Document existing control processes and identify gaps needing attention.
• Team Roles: Define who will conduct different parts of the audit and their responsibilities.
• Timeline Planning: Create a realistic schedule that meets Belgian statutory deadlines.
• Documentation System: Set up a structured method to record findings and maintain evidence.

• Scope Definition: Clear statement of audit objectives and boundaries aligned with Belgian Company Code requirements.
• Methodology Section: Detailed description of testing procedures and sampling methods following IBR-IRE standards.
• Risk Assessment Framework: Documentation of identified risks and planned responses.
• Timeline Schedule: Specific dates for each audit phase, meeting statutory deadlines.
• Data Protection Measures: Compliance protocols with Belgian GDPR requirements.
• Quality Control Steps: Review procedures ensuring accuracy and completeness.
• Documentation Requirements: List of required evidence and record-keeping standards.
• Reporting Guidelines: Format and content requirements for final audit reports.

While both documents focus on organizational oversight, an Audit Procedure differs significantly from a Compliance Procedure in several key aspects. Audit Procedures specifically examine financial accuracy and operational effectiveness, while Compliance Procedures ensure ongoing adherence to regulations and internal policies.

• Scope and Timing: Audit Procedures are typically periodic and comprehensive reviews, while Compliance Procedures operate continuously throughout the year.
• Primary Focus: Audit Procedures concentrate on verification and validation of financial statements and controls, while Compliance Procedures emphasize regulatory adherence and risk prevention.
• Implementation: Audit Procedures require specialized auditor expertise and follow Belgian IBR-IRE standards, while Compliance Procedures can be managed by internal compliance teams.
• Documentation Requirements: Audit Procedures demand extensive evidence collection and formal reporting, whereas Compliance Procedures typically involve ongoing monitoring and regular updates.