Auditing department

This Department has two branches:

First Branch: Auditing:

  • Auditing the financial statements prepared by the company’s management (client).
  • Review the daily inputs, documents and records according to the Egyptian and the international auditing standards and the required examination of the client’s documents and records; preparing the report of interim and final auditing together with the relative reports; preparing the assistive reports such as the financial analysis and the activity growth and comparing the same to or approving the same by comparing the rates of activity in order to help prepare a historical record of the results of the company’s activity supported by charts and explanatory tools in order to make it easy for the management to make the right decisions on time according to the requirements of the Egyptian and international auditing system, Egyptian and international accounting standards and the internationally recognized practices.
  • Review the databases and software on the computer in case the company holds regular accounts on the computer.
  • Perform the regular review of the company’s books, records and documents and software according to the client’s desires and needs.
  • Review the client’s financial statements; give opinion thereon and the accuracy thereof and state to what extent such financial statements express the financial position.

Second Branch: Preparing and Book keeping:   

This branch is concerned with the following:

  • Designing and preparing the accounting systems according to the type of each activity.
  • Keeping integral groups of books dependent on the actual results through the general accounting systems and cost accounts.
  • Prepare the financial statements of the company (client) to determine the actual financial position of the client when the client desires so.


Third Branch: Check with due diligence:

Perform the procedures required for check with due diligence.

Company’s Profile, Legal Form and Objectives:

This part includes the following:

  • Viewing the historical development of the company’s activity.
  • Explaining the company’s activities and objective.
  • Analyzing the revenues according to the activity.
  • Company’s sales and credit conditions of the main clients.
  • Viewing the sources of supplying and contracts concluded with the main suppliers – (to be coordinated by the company).
  • Analytic summary of the company’s activity.
  • Viewing the company’s legal form.
  • Developing and dividing the company’s capital into founders and shareholders.

Basics of Calculating the Future Cash Flows:

Revising and checking the assumptions upon which the expected net free cash flows are calculated through which the fair value of the company is calculated by using the different evaluation methods.

Operation Results:

The analysis of the data operation results, which are provided to us by the company, including a summary of the financial statements of the company along with the revenues for such period:

  • Analyzing the revenues according to the clients:
  • Ensuring that the company does not depend in its revenues on a main customer.
  • Enquiring and verifying the company’s policy in terms of recognizing the revenues.
  • Cost of revenues and gross profits:
  • Analyzing the cost of revenues as per the components thereof and the calculation method.
  • Analyzing and commenting on the gross profits.
  • Analyzing the cost of laborers.
  • Analyzing and verifying the policies of the depreciation calculation.
  • Analyzing and commenting on the other components of cost of revenues.



Other costs:

  • Obtain the analysis of administrative and general expenses, costs of sale and distribution and commenting on the main points thereof.
  • Obtain the analysis of the directors’ salaries and remunerations and the incentives paid to the staff and the policy applicable with the company for disbursement.
  • Analyzing the balances of credit or financing banking interests; reviewing the policy of profit calculation or the losses resulting from the change of the exchange rates of foreign currencies.



Procedures of checking with due diligence:

Defining the book cost of the company’s assets under check:

The book cost of the company’s assets, subject to check, shall be determined according to the budget approved by the company’s auditor and the analysis thereof in addition to the contents of the detailed reports of the auditing works (if any). Hereinafter, the most important procedures which shall be performed to determine the book cost of the assets:

  • Compatibility of the elements of the financial statements approved by the auditor with the relative auditing balances.
  • Compatibility of the auditing balances with the books, records or analytical outputs of the computer for each element.

Financial statements subject to check:

  • Studying the mortgages of any of the company’s assets, subject of check, in highlight of the report of the legal consultant appointed to prepare the study of the judicial report of the company.

Long Term Assets:

  • Analyzing the fixed assets according to a homogenous group showing the historical cost, accumulated depreciations and the total net book cost.
  • Calculating the depreciation rates used for every group of assets and comparing such rates to the prevailing rates in similar industries along with explaining the basis on which the depreciation rates are established.
  • Verifying the existence of completely depreciated book values and which are still on duty and the technical condition thereof along with any other capital losses of effective values.
  • Ensuring the existence of usable but not operative fixed assets and the reasons for the suspension thereof and the possibility to reuse the same in serving the company’s activity, subject to check.
  • Ensuring the verification of the actual existence of the company’s fixed assets through the following procedures.


Debtors & Clients:

  • Analyzing the balances of the debtors and clients on the date of performing the check with due diligence.
  • Verify the attestations of the balances of the debtors and clients and the extent of the compatibility thereof with the values recorded in the books and analyzing the reasons for the objections to the attestations (if any) and the answer of the company’s management to the same.
  • Commenting on the balances of the main clients and the conditions of the credit granted to them.


  • Analyzing the balances of the debtors and clients. Explaining the company’s policy in terms of the bad debts and the availability of guarantees of such debts.


  • Obtaining confirmations of the sufficiency of such allocations and existing balances in the funds and banks:


Cash in hand and cash at banks:

  • Analyzing the company’s balances in the banks and the cash position on the date of the check with due diligence.
  • Perform a critical examination of the payment movements, if any.
  • Ensuring the lack of the claim for liquidating the letters of credit.
  • Summarizing the credit facilities and the guarantees granted to the company.

Defining the under – check company’s liabilities:

Balances of the Main Suppliers and Creditors:

  • Analyzing the existing balances of the suppliers and creditors.
  • Examining the results of sending the attestations to the suppliers, creditors and credit balances and the effect thereof on the value of such balances.
  • Perform the critical examination of the cost of the under – construction projects and connecting the same to the balances of the main suppliers.


  • Summarizing the conditions of the existing loans, lending bank, amount, payment method and its dates, provided guarantees and currency.
  • Compatibility of the balances of the book loans according to the budget approved by the company’s auditor with the loan contracts concluded with different financing authorities along with defining the punctuality of paying the loan installments and the related interests.
  • Analyzing the capital and reserves and all shareholders’ rights according to the types thereof.
  • Analyzing the amounts paid on account of the company’s capital increase and following up the procedures for registering such increase (if any).

Tax Position:

  • Define the value of the tax liabilities expected for each type of taxes to which the company is subject for the taxes of commercial and industrial profits and the salary income and the like and the stamp taxes according to the assessment forms in highlight of the provisions of the tax laws Nos. 157/1981, and its amendments, law no. 91/2005 and law 111 /1980 and its amendments.

Judicial Position:

  • Defining the expected judicial liabilities in highlight of the report of the legal advisor appointed to prepare the study of the company’s judicial position in terms of the most important lawsuits filed by and against the company, probability of expected profit and loss upon the defense of the company in each lawsuit independently.

Defining the Shareholders’ Net Rights under check:

  • The net rights of shareholders shall be defined through discounting the total company’s liabilities from the net assets after considering the value of any considerations upon the results of the check with due diligence related to defining the value of assets and liabilities as outlined in the aforementioned points.
  • Defining the value of the company’s share after affecting by the results of the procedures on the net rights of the shareholders through dividing the net rights of the shareholders to the number of issued shares along with preparing a summary showing the changes of each element of the company’s approved financial statements and the effect of the same on the net value of the shareholders’ rights which shall be used in the main purposes including the procedures of the check with due diligence.