Financial Reporting Organization

Analysis of the Organization

The activity of the financial reporting organization consists in interventions in the followings areas:

  • organizational analysis of business administrative services
  • organizational model to prevent business frauds

Organizational analysis of business administrative services

This kind of analysis can be a study tool as a basis for the introduction of a safeguard system for the administrators against eventual frauds (D.Lgs. 231/01) and, at the same time, can be the starting point for an audit service.

It consists of an intervention aimed at recognition and analysis of the administrative system organization, as well as evaluation of the procedural system of internal control for production of economic and financial data. The commitment involves pointing out existing key issues in order to identify the reasons and provide appropriate solutions.

Organizational model to prevent business frauds

The legislative decree 231/01 introduced administrative responsibility of juridical persons for others’ illicit actions into the legal system: this means that, other than physical persons such as collective Bodies (and companies), an executive officer or an employee who commits a fraud in the interest of the Company, of the ones listed in a periodically updated file and which contains business frauds, crimes against the Public Administration, frauds against the State and the EU as well as culpable homicide and culpable lesions as consequence of a job injury if in violation of law 62/94, is to be held personally responsible.

Decree 231/01 indicates business responsibility to be assessed in a criminal trial, that if confirmed, involves the responsibility of the juridical person in the judgement, which can lead to endorsement financial charges, to the cancellation from the Registry of enterprises, passing through the seizure of the profits and the removal of the opportunity to take on contracts with the Public Administration.

In the investigation process of the Companies (before judgment) precautionary measures can be taken, as for example, the anticipation of the judgement to prevent illicit activities.

The responsibility process is to be set up against companies which do not have a Management and Control System to prevent frauds (the inversion of the incumbency of proof, while in the case that the company has governance tool it falls on the investigator to prove that the system be inadequate or ineffective: it is evident that the Company is privileged in “excluding its responsibility” if it has an adequate internal audit and control system, leaving to the investigator the incumbency to prove that the system is inadequate otherwise, in absence of the System, to demonstrate itself extraneous from the facts.

The adoption of a Control framework, as well as functioning as a preventive tool, creates business benefits by increasing the efficiency of the organizational division of labour tasks.

Kenton & Miles WorldWide Accounting Organization has the experience to help the Company in setting up the internal procedures which will constitute the Model, being also supported by a legal advisor who is competent in the subject. Our firm, as an Independent Body, is able to periodically audit the best application of the Model, to suggest changes on the basis of experience in the field, to point out critical issues to the CEOs.

Bookkeeping Assistance

Through such service, we intend to place a specific professionalism in personalized assistance at disposal of enterprises, for the arrangement of charts of accounts and organizational systems, which are aimed at qualifying the financial statement, the consolidated balance sheet, as well as economic and financial estimates.

IT Systems analysis

The intervention consists in the analysis and evaluation of the quality and efficacy of the IT system by experts in this sector in order to verify the compliance and system security as well as the reliability and integrity of the financial and economic data.