Audit expert SP audit check 14 -21 days Investigate the SP’s finances. Review audited financial statements. Investigate the SP’s ability to deliver on its commitments and overall effectiveness. Investigate the SP’s system of internal quality and other controls, its security history, and the extent to which it is audited, financially and otherwise. SP – service provider
1) Review audited financial statements IFRS/GAAP Balance sheet Income statement A statement of changes in equity Cash flow statement Notes to the FS • A statement of assets and liabilities • Financial position • A summary of transactions and events • Financial performance • Changes in equity • A classification of cash flows • Accounting policies and explanatory notes
2) Overall Effectiveness Ratios EBITDA Earnings before Interest, Taxes, Depreciation and Amortization EBITA EPS Earnings per share Profitability ratios Liquidity ratios EBIT NOPAT Net operating profit after tax (EBTincome tax) EBT COGS Cost of goods sold Activity ratios (Efficiency Ratios) Market ratios Debt ratios (leveraging ratios) Cash flow ratios
3) System of internal quality and other controls, security history Internal control system S U P P O R T Security S A F E T Y Audit Extent of auditing S T A B I L I T Y