The aim of the auditing is to protect the shareholders.

The auditing in Italy (revisione dei conti) is performed by professionals registered at the court.

The task of the auditor is to control if the directors manage the company in accordance with Italian GAAP (General Accepted Accounting Principles) in order to identify the best solutions for improving the company organization.

The auditing in Italy is mandatory for the S.p.A. and for the S.R.L. which share capital is over €120.000 and in other specific cases (i.e.: when a S.R.L. has exceeded for 2 consecutive financial years two of the following three limits:

• total assets on the balance sheet: € 3.650.000
• earnings from sales and services: € 7.300.000
• average of personnel employed during the financial year: 50 employees

 The control body is charged to check and monitor the compliance with:

• the law
• the articles of association of the company
• correct administration and internal controls
• organizational and administrative structure
• accounting system.

 The control body:

• is composed by three members
• must perform a quarterly audit
• provide a report on the financial statements.

For the S.R.L. can be appointed a sole auditor instead of the control body board.

It is possible to audit accounts also on voluntary basis, the procedure is appreciated by banks and other stakeholders.

The due diligence for acquisition of companies require to analyze every possible aspect connected with the company to be acquired.

The auditing activities include:

• accounting investigation or control (compulsory and voluntary)
• analysis
• interim controls
• limited audits
• evaluation and inspection of internal control systems
• data rooms reviews
• due diligence review for merger or acquisition of companies
• review of fair price appraisal
• review of internal controls to management
• recommendations to management and owners for achieving the best business controls
• evaluation and analysis of accounting principles
• administrative analysis and preparatory accounting to control the preparation of annual financial statements and also group consolidated financial statements.