Wirtschaftsprüfung
Auditing
Our farsighted approach and and attention to detail provide security.

Examination of managements regularity

Many local authorities have owner-operated municipal enterprises and/or stakes in corporations under private law. Legislative authorities impose quite specific requirements on the actual management of these businesses. The aim is to make sure that the public budgeting principles of economy and thrift are duly considered in these establishments as well.

According to Section 53 of the German Budgetary Principles Act (Haushaltsgrundsätzegesetz), if a local authority has a stake of more than 50% in an enterprise, it is imperative for the annual audit to be supplemented by an examination of management regularity. This is to be commissioned separately. The same applies if several local authorities jointly hold over half the shares.

Owner-operated municipal enterprises and other establishments are duly regulated to ensure that the supplementary audits under Section 53 of the German Budgetary Principles Act are part of the statutory annual audit.

The examination is carried out in accordance with the list of questions in IDW PS 720.

Our services at a glance:

  • Examination and report on the supplement to the annual audit under Section 53 of the German Budgetary Principles Act
  • Advice on setting up appropriate documentation and verification systems

Further information