��������Ƶ

An Audit Procedure is a detailed set of steps that Swiss auditors follow to examine and verify a company's financial records and operations. These procedures help ensure compliance with Swiss audit standards and the Swiss Code of Obligations while detecting potential errors, fraud, or irregularities.

Good audit procedures typically include reviewing source documents, confirming account balances, observing inventory counts, and analyzing financial ratios. In Swiss practice, these steps must align with the standards set by EXPERTsuisse and follow risk-based approaches that focus on areas most likely to contain material misstatements. This systematic process helps auditors form an independent opinion about the accuracy and reliability of financial statements.

Use Audit Procedures when your organization needs systematic verification of financial statements or operational processes. This becomes especially important during annual statutory audits required by Swiss law for companies exceeding specific size thresholds under the Code of Obligations, or when seeking external investment or bank financing.

These procedures are essential before major business decisions like mergers, acquisitions, or restructuring. They're also valuable when investigating suspected irregularities, implementing new accounting systems, or responding to regulatory inquiries. For Swiss subsidiaries of international companies, audit procedures help ensure local compliance while meeting group reporting requirements.

• Standard Financial Audit Procedures: Focus on verifying financial statements, account balances, and transactions according to Swiss GAAP FER standards
• Operational Audit Procedures: Examine business processes, internal controls, and efficiency measures across departments
• Compliance Audit Procedures: Ensure adherence to Swiss regulations, especially for regulated industries like banking and insurance
• IT Systems Audit Procedures: Evaluate cybersecurity controls, data protection measures, and system reliability under Swiss data protection laws
• Special Purpose Audit Procedures: Address specific needs like due diligence reviews, fraud investigations, or merger-related assessments

• External Auditors: Licensed Swiss audit professionals who design and execute the audit procedures, following EXPERTsuisse standards
• Board of Directors: Oversee and approve audit procedures, receive findings, and ensure proper governance
• Management Teams: Provide necessary documentation, respond to audit queries, and implement recommended changes
• Internal Audit Departments: Develop and maintain internal audit procedures, often working alongside external auditors
• Regulatory Bodies: Review audit procedures during inspections, particularly FINMA for financial institutions
• Shareholders: Rely on audit results for informed decision-making about their investments

• Scope Definition: Clearly outline the audit objectives, timeframes, and departments involved based on Swiss audit standards
• Risk Assessment: Identify key risk areas and materiality thresholds specific to the company's industry and size
• Resource Planning: Determine required team members, expertise levels, and time allocations for each audit phase
• Documentation Review: Gather relevant financial statements, internal controls documentation, and previous audit reports
• Compliance Check: Review current Swiss regulations and EXPERTsuisse guidelines applicable to the audit
• Stakeholder Input: Collect insights from management and department heads about business processes and controls

• Audit Objective: Clear statement of purpose, scope, and intended outcomes aligned with Swiss audit standards
• Methodology Section: Detailed description of audit techniques, sampling methods, and testing procedures
• Risk Assessment Framework: Documentation of identified risks and planned responses per EXPERTsuisse guidelines
• Documentation Requirements: Specific records, evidence, and working papers needed to support audit conclusions
• Reporting Protocol: Format and timing of audit communications, including interim and final reports
• Confidentiality Provisions: Data protection measures compliant with Swiss privacy laws
• Quality Control Measures: Review processes ensuring compliance with professional standards

An Audit Procedure differs significantly from an Internal Investigation Procedure in several key aspects, though both are essential compliance tools in Swiss business operations. While audit procedures follow standardized methodologies to examine financial statements and operations systematically, internal investigation procedures are more targeted and responsive to specific incidents or concerns.

• Scope and Timing: Audit procedures are regular, planned activities following a predetermined schedule, while internal investigations are typically reactive and event-driven
• Methodology: Audit procedures use standardized testing and sampling methods aligned with Swiss audit standards, whereas internal investigations employ more flexible, situation-specific approaches
• Legal Framework: Audit procedures must strictly comply with Swiss audit regulations and EXPERTsuisse guidelines, while internal investigations have more procedural flexibility
• Reporting Requirements: Audit procedures require formal, standardized reporting to stakeholders, unlike internal investigations which may remain confidential and follow custom reporting formats