Reviews of economic management

Reviews of economic management of territorial self-governing units represent a separate category of verification engagements carried out by auditors in the Czech Republic according to selected provisions of the Act no. 420/2004 Coll., on review of management of territorial autonomous entities and voluntary unions of municipalities.

During the reviews of economic management, we build upon the Act no. 93/2009 Coll., on auditors, ethical standards, and, last but not least, upon the Auditing Standard no. 52 dealing with reviews of economic management of territorial self-governing units and upon the International Standard ISAE 3000 which is focused on assurance engagements other than audits or reviews of historical financial information.

On the basis of the Municipalities Act, municipalities and communities in the Czech Republic are obliged to ask the Regional Authority, and (in the case of City Districts of the Capital City of Prague) the Municipal Authority of the Capital City of Prague, to carry out the review of economic management of their municipality. Alternatively, they can order the review of their economic management from an auditing company. The possibility of ordering the review of economic management is used especially by large territorial self-governing units.

With regard to specifics of this type of verification engagements, we have created specialised audit teams whose members have long-term experience with this type of orders. Besides reviews of economic management, which are obligatory for territorial self-governing units, we also carry out, according to the client’s requirements, optional audits of the Financial Statements of territorial self-governing units.

NEXIA AP a.s. is an auditor of both small territorial self-governing units and leading municipalities of the Czech Republic (Capital City of Prague, Statutory City of Brno, including its City Districts).