Inhalt

Audits in accordance with the Budgetary Principles Act (HGrG)

Under the provisions of § 53 of the Budgetary Principles Act (HGrG), the auditor of a company must – at the request of a regional authority, when certain criteria are met – be commissioned to expand the audit to assess the governance of the company. This applies if the regional authority holds a majority stake in a company incorporated under private law or if it owns at least one quarter of the shares and jointly holds a majority stake along with other regional  authorities. For other groupings of companies or undertakings operated by regional authorities themselves, special regulations are often in place that stipulate audits pursuant to § 53 HGrG.

Where we excel – how you benefit

Auditing and consulting for public-sector entities is an important part of our business. Along with special-purpose associations and undertakings operated by regional authorities, we work with comparable entities such as cultural and tourism marketing boards, housing companies, utilities, IT services and companies in the healthcare sector. Through those activities, our experts have gained extensive familiarity with governance audits. When conducting the audits, we work exclusively by the audit standards of the German Institute of Auditors (IDW PS 720) to adequately reflect the legal requirements. In addition to the statutory obligations, however, we see the discussion of the question catalogue provided in IDW PS 720 as an opportunity to engage in a direct dialogue with the management team to identify potential improvements and develop the company's processes efficiently.