Audit & Assurance
Our service philosophy
AEH audit approach is tailored to every business field of every client, and goes beyond the financials.. Businesses need auditors who understand their industry, geography, political and economic policies and challenges, their long-term strategy including any risks that need to be assessed and managed. Businesses need advisors who can use this crucial information into the audit process.
AEH Audit and Assurance Practices adhere with the Egyptian as well as the international standards in Quality Control, Auditing, Review, Other Assurance and Related Services.
Our audit approach assimilates rigorous standards of professional independence and objectivity, with a methodology that emphases on crucial risk areas and co-ordinates together our technical skills and practical knowledge commensurate with detailed knowledge of your organization and the financial services industry in the conduct of each audit assignment.
AEH approach includes analysis of business performance against management objectives, evaluation of business processes, assessment of business risks and comparison with industry standards. This approach focuses on understanding all aspects of a client’s business, including areas such as: Industry-specific processes, Revenue cycle and marketing, Business processes, Fixed and working capital management.
We want our clients to see us as business partners with whom they can discuss, with confidence, their business issues and strategies.
Advanced audit technology
We use up-to-date information technology to support and complement our audit approach. This supports all phases of the audit process – planning, execution, and reporting. We use latest innovative audit and documentation software, which contains tools for analyzing, documenting, managing, communicating, interrogating, extracting, reviewing and presenting the audit process.
1. Audit Assistance
“The financial statements are the responsibility of management,” always appear prominently in most of the auditor’s communications, including the audit report and eventually the preparation for the statutory audit will be always challenging for the management.
The management and accounting staff often do not have the time or expertise to prepare accurate financial statements and audit file or answer all the questions that arise during the audit by the statutory auditors. Many times, this results in an inefficient audit, and a less than satisfying experience for everyone involved in this process.
AEH is having an experienced team of professionals, who is having exposures in different industry segments, deep knowledge in IFRS Frame work and familiarity with International standards in auditing and quality assurance that will help you in a hassle free statutory audit process in addition to the help of your accounting team. Our services include the following:
- Year-end clossing process support and review
- Preparation of lead schedules
- Analyze or reconcile accounts
- Initiate confirmations for mailing
- Evaluate or Select accounting policies or procedures
- review and correct financial statements presentation or footnote disclosures
- Evaluate and determine estimates included in financial statements
- Preparation of calculation sheets and supporting schedules
- review and correct account grouping or classifications in the financial statements
We can also assist you on industry specific issues
- Real estate or developer companies:
- We will help you to recognize revenue in accordance with IFRS 15 for all the development projects, which includes the retrospective application, calculation sheets, cost allocation, transfer to inventory and development in progress.
- Construction and contracting companies:
- Our experienced industry specific staff can help you to calculate and prepare the revenue recognition and contract work in progress tables in line with IAS -11 / IFRS-15 in order to have a proper closing of accounts. Also we can assist on the fair valuation of financial assets and impairment on investments.
2. Assurance Services
Our service philosophy
Our experienced auditing team at AEH takes the risk-based approach to evaluate your organizational risks. We help you bring value to your organization by providing services tailored to your situation and needs. We have been helping hundreds of enterprises over decades in improving their business productivity and in moving their performance to the next level. Our valuable insight and recommendations benefit enterprises achieve cost efficiencies in their internal audit functions. We assist companies navigate risks and elevate the role of Internal Audits with the help of our seasoned professionals, who are well-versed in financial and operational internal auditing, IT audits, fraud risk management and risk assessments.
Internal Audit and Control System Reviews
Internal audit ensures the better management of an enterprise by improving its governance, risk management and management controls. Internal auditing determines whether the business is on the right track and helps companies to accomplish their objectives by bringing a systematic, disciplined approach.
It is an independent, objective assurance and consulting activity intended to add value and develop an organization’s operations. It helps an organization achieve its objectives by bringing a methodical, meticulous and disciplined approach to assess and enhance the effectiveness of risk management, control, and governance processes.
We can review your internal audit function, assess its effectiveness and refine it to suit your business needs. You can choose the level of input you need from us – we can work as your consultants or alongside your in-house team.
Benefits of having a good internal audit system
- Safeguards assets
- Reduces the chance of fraud
- Increases financial reliability and integrity
- Enhances the efficiency of business operations
- Ensures compliance with laws and regulations
A management audit can be defined as an audit which analyzes the effectiveness of the management team of a company. The purpose of this is five-fold: understand current practices relate these to company financials, suggest new procedures which will improve the efficiency of managers, present a financial gain related to these new procedures, and create benchmarks and projections for the future. A management audit letter is the final piece of material shared with the client; it is a report of the findings.
The management audit process can be explained by the auditing of both the management method as a whole as well as key management staff. This is important to establish the effectiveness of both the leaders of the department as well as how it performs as a team. In this way, it can fill the purpose of a staff audit or performance audit, depending on the scope of the company.
The opportunity to examine your business in-depth and make important strategic decisions comes with an operational audit. Unlike financial audits, operational studies focus on the process of running your business. They are frequently conducted by outside agencies, though larger businesses sometimes maintain internal auditing departments. It is recommended that an impartial auditor conduct the evaluation because it adds the perspective of another viewpoint, especially if the auditor is experienced with businesses similar to yours. A well-performed audit can be beneficial, as it is personalized to identify specific areas of weakness and potential growth opportunities unique to your business.
What we do and specialize in:
Understanding business objectives and risks, Complete internal audit outsourcing, Partial internal audit outsourcing, Risk assessments & audit plans, Staff sharing basis (supervisory and execution) ,Assisting with change management and business awareness processes, Training and assisting staff, Revenue Assurance
Establishing the Audit Universe
In order to establish an audit universe, our team has to obtain a complete understanding of the organization in terms of structure, roles performed by various departments, the authority delegation hierarchy etc. We will also study the external context of the company – in terms of the market and competition. The Audit Universe is defined as the sum of all Auditable Units, and these could include Finance, Human resources, Administration, Operations, Business Development, Procurement, Supply Chain & Logistics etc.
Focuses the light on all the information relevant to making decision on a particular transaction. Identifying issues related to transactions, facilitating early tackling, Establishing true value or cost of a business transaction. Empowering negotiate the best terms during transactions. All businesses involved in acquisition or mergers as buyers or sellers must ensure that all financial information exchanged are verified and accurate, not only to prevent the buyers from paying more than its worth (or in the seller’s case, receiving less than the required price), but also to ensure that their governance and risk management objectives are perfectly fulfilled.
Objectives of a Due Diligence
1-Investigate in the affairs of business as a prudent business person.
2-Confirm all material facts related to the business.
3-Assess the risks and opportunities of a proposed transaction 4-Reduce the risk of post-transaction unpleasant surprises 5-Confirm that the business is what it appears to be
6-Create a trust between two unrelated parties 7-Identify potential deal killers in a transaction and avoid a bad business transaction
8-Verify that the transaction complies with investment or acquisition criteria.
Develop a program specifying business purpose of the acquisition, critical goals and objectives. Designate a team of professionals with right combination of experience. Set up a timetable for completing each step of the assignment. Set up the criteria of what and how information will be collected and retained. Develop a pragmatic approach to document conversations, documents received and analysis performed. Issues are identified and communicated as and when discovered and always prior to the issuance of our written report.
Due Diligence Process
Using proprietary Intelligence for successful transactions, our team can substantially enhance your probability of success by:
- Understanding your objectives.
- Developing mutually agreed procedures.
- Providing professional strategic, commercial and financial due diligence with excellent regional intelligence.
- Providing regular reporting which links commercial and financial issues to your strategic objectives.
- Facilitating decision making and transaction negotiations.
- Assisting with post transaction implementation procedures.
- We can help you as we perform: Financial & Accounting Due Diligences. Strategic Due Diligence.
- Operational Due Diligence including Commercial / Market Feasibility Studies.
- review processes, outsource providing, etc.
- Internal Controls Diligence Risk Management – assess target profile and risk focus areas, Regulatory / Compliance diligence Legal & Tax due Diligence services
Forensic And Special Audits
If you observe fraud or questionable activity related to fraud in your business, you must act quickly in order to avoid loss of a huge percentage of revenue or it may end up in a no recoverable situation.
Our services include:
- accounting fraud Investigations
- In depth data Analysis
- Fraud Risk Management
- Awareness Trainings
Our investigative experience include:
- Conflicts of interest
- Fraudulent financial reporting
- Misappropriation of corporate assets
- Money laundering
- Quantifying losses incurred by a not-for-profit action by the top management
AEH professional accountants have the skills in accounting, auditing, and investigations to assist every management to uncover any type of financial fraud and preserve evidence. We look beyond the numbers and deal with the business reality of the situation.
Our accounting experts are well equipped to communicate the financial information related to the fraud in a clear and concise manner to the management and in front of the court.
Mergers & Acquisitions
AEH is a very well-known name among business advisers for the knowledge and experience in all types of financial transactions. Our Continuous presence helps clients do better deals and create value through mergers, acquisitions, disposals and restructuring.
We work together with our clients to:
Develop the right strategy before the deal.
Execute their deals seamlessly.
Identify issues and points of negotiation and value.
Implement changes to deliver synergies and improvements after the deal.
We intend to develop integrated and efficient cross-border M&A capabilities within the network, providing technical tools, business development help and a grid of contacts including banks and law firms.
Our team here in Egypt, supports our clients with their knowledge, expertise in deals, valuation strategy, and corporate finance to help them maximize the value of a transaction. We can advise clients across the deal continuum from strategy to execution to capturing value post deal. Clients can be better positioned to expedite their deals, minimize their risks, capture and deliver value to their stakeholders, and quickly return to business as usual.
Our merger and acquisition professionals with various backgrounds and experience with accounting firms and corporations, combine an extensive global network with local industry insights or other service line professionals to help you achieve in-organic growth through M&A.
We can assist you throughout the transaction lifecycle by:
- Assessing the strategic fit of a business.
- Analyzing all aspects of a transaction.
- Project management
- Deal structuring
- Process monitoring
- Legal documents drafting
- Negotiation assistance.
Our Services include:
1-Form basic M&A concepts based on the
client’s business strategy
2-Rank priority of
potential sellers/buyers and offer advice on approaching them Manage the deal’s
schedule and processes
4-Prepare an information memorandum for potential sellers/buyers
5-Contact potential sellers/buyers to ascertain their initial interests
6-Provide advisory on various negotiation strategies and on deal executions with the potential sellers/buyers
7-Provide a comprehensive support on deal structuring
8-Arrange due diligence processes and related
9-support services Support drafting of an indicative offer, memorandum of understanding, definitive agreement and various closing documents
10-Provide advisory on financing and
11-Prepare press releases and other disclosure documents Monitor the closing processes.