IKONA AUDIT
Follow the river and you will reach the sea !
Vision
Our vision is to be respected and trusted by our clients and business partners.
Mission
Our mission is to provide excellent professional services to meet clients’ needs.
Values
Passion – Energy from within is the fuel for our commitment to excellence.
Trust – We follow through on promises and commitments.
Contribution – We collaborate with businesses to achieve their goals.
Excellence – Our services come from years of advanced training and professional experience.
Communication – We welcome opportunities to discuss openly and periodically with our clients.
Services
We understand that every business is unique and we tailor the services we provide according to the size and nature of your business. Financial audit is one of IKONA’s core professional activities. We provide:
• statutory audit and review of annual financial statements
• internal review and review of internal controls
• compilation of financial statements and other financial reports
• performance and value for money audits
• risk assessment and recommendations to management
• special purpose audits
In addition to the financial audit services, we offer services such as:
• internal audit;
• financial consultancy;
• financial management;
• professional training in the field;
• tax advice.
Find out more about the services most frequently requested to us by our clients:
REASONABLE ASSURANCE ENGAGEMENTS
REPORT A reasonable assurance engagement will result in a conclusion expressed in a positive form of words: ”In our opinion, the financial statements present fairly, in all material respects, the financial position of ABC Company as at December 31, 20X1, and of its financial performance and its cash flows for the year then ended in accordance with the applicable financial reporting framework”.
OBJECTIVE The objective of the reasonable assurance engagement is to reduce the engagement risk to an acceptably low level in the circumstances of the engagement. The level of assurance offered is high, but not absolute. An example of a reasonable assurance engagement is the statutory audit (the audit of financial statements as requested by the legislation in force).
PROCEDURES The practitioner shall perform procedures to obtain sufficient and appropriate evidence. Such evidence is collected following a systematic process, which includes:
understanding the terms of the engagement;risk assessments;responses to risks;performing additional procedures by corroborating methods such as inspection, observation, confirmation, recalculation, reperformance, analytical procedures, and interviews. Such additional procedures also include testing the operational efficiency of internal controls; andassessing the evidence collected.
STANDARDS The practitioner shall carry out the reasonable assurance engagements in accordance with the International Standards on Auditing (ISA), issued by IAASB (International Auditing and Assurance Standards Board) and fully adopted by CAFR.
ETHICS According to the Code of Ethics for Professional Accountants drafted by IESBA (International Ethics Standards Board for Accountants), the practitioner shall comply with the following ethical principles: Integrity, Objectivity, Professional competence and due care, Confidentiality and Professional Behavior and has to be independent of his/her clients.
LIMITED ASSURANCE ENGAGEMENTS
REPORT A limited assurance engagement will result in a conclusion expressed in a negative form of words: „Based on our review, nothing has come to our attention that causes us to believe that the financial statements of the Company ABC as of 31 December 20X1 are not prepared, in all material respects, in accordance with an applicable financial reporting framework.”
OBJECTIVE The objective of the limited assurance engagement is to reduce the engagement risk to a level that is acceptable in the circumstances of the engagement but where that risk is greater than for a reasonable assurance engagement. The level of assurance given is deemed to be moderate.
PROCEDURES The practitioner also obtains sufficient and appropriate evidence, as part of a systematic process of the engagement, but in which procedures are intentionally limited compared to a reasonable assurance engagement.
STANDARDS The practitioner shall perform the limited assurance engagements in accordance with the International Standards on Review Engagements (ISRE), issued by IAASB and fully adopted by CAFR.
ETHICS According to the Code of Ethics for Professional Accountants drafted by IESBA (International Ethics Standards Board for Accountants), the practitioner shall comply with the following ethical principles: Integrity, Objectivity, Professional competence and due care, Confidentiality and Professional Behavior and has to be independent of his/her clients.
COMPILATION ENGAGEMENTS
REPORT In a compilation engagement, the practitioner does not express an audit opinion or a review conclusion regarding the extent to which the financial information is prepared in accordance with the applicable financial reporting framework. The reason is that compilation engagements are not assurance engagements, therefore the practitioner is not required to verify the accuracy and completeness of the information used to compile the financial statements.
OBJECTIVE The objective of the compilation engagement is to assist management in preparing and presenting the financial statements in accordance with the applicable financial reporting framework, based on the information provided by the management.
PROCEDURES The practitioner shall apply his/her expertise in accounting and financial reporting and shall compile the financial information by using the records, documents, explanations and other data, including material judgments, provided by the management.
STANDARDS The practitioner shall perform the compilation engagements in accordance with the International Standards on Related Services (ISRS), more precisely ISRS 4410 ”Compilation Engagements”. These standards are issued by IAASB and fully adopted by CAFR.
ETHICS According to the Code of Ethics for Professional Accountants drafted by IESBA, the practitioner shall comply with the following ethical principles: Integrity, Objectivity, Professional competence and due care, Confidentiality and Professional Behavior. Independence is not a mandatory requirement in case of compilation engagements.
AGREED-UPON PROCEDURES ENGAGEMENTS
REPORT The recipients of the report shall evaluate themselves the procedures and the findings reported by the auditor and shall form their own conclusions based on the auditor's activity. The auditor provides only a report on the actual findings derived from performing the agreed-upon procedures, therefore no assurance is expressed.
OBJECTIVE The objective of engagements to perform agreed-upon procedures, an auditor is engaged to carry out those procedures of an audit nature to which the auditor and the entity and any appropriate third parties have agreed and to report on factual findings.
PROCEDURES An engagement to perform agreed-upon procedures can be performed in the following cases:
procedures regarding the individual elements of the financial data (for example, trade receivables, receivables, purchases from related parties and profits from the disposal of a business segment, a tax etc.);procedures regarding components of financial statements (e.g. a balance sheet);procedures regarding a complete set of financial statements;audit of projects financed from European funds, based on the recommendations in the financing contracts, which in many cases indicate applying ISRS 4400.In order to obtain sufficient and appropriate evidence, the auditor disposes of the following procedures: interview and analysis; recalculations, comparisons and other checks of the accuracy of the writing; observation; inspection; confirmations.
STANDARDS The practitioner shall perform the agreed-upon procedures assignment in accordance with the International Standards on Related Services, more precisely ISRS 4400 „Engagements to Perform Agreed-Upon Procedures Regarding Financial Information”. These standards are issued by IAASB and fully adopted by CAFR.
ETHICS According to the Code of Ethics for Professional Accountants drafted by IESBA, the practitioner shall comply with the following ethical principles: Integrity, Objectivity, Professional competence and due care, Confidentiality and Professional Behavior. Independence is not a mandatory requirement in case of agreed-upon procedures assignments. Is the auditor not independent, then he/she shall declare this in the findings report.
INTERNAL AUDIT ENGAGEMENTS
REPORT The role of internal auditors is to advise and to provide recommendations and decision support for management at all hierarchical levels. The final decision regarding the implementation of the recommendations belongs to the audited entity, and the auditor's duty is to monitor over time the extent to which the recommendations made have been implemented. Accordingly, the audit report will contain not only the actual findings and risks identified and assessed, but also the auditor's recommendations for the audited firm and, where appropriate, the extent to which the recommendations of previous engagements have been implemented by the audited entity. Internal audit reports are characterized by:
completeness – the audit report comprises all the findings that deserve the attention of the management and thus that could influence the management’s judgment on the audited aspects;truthfulness – aspects are presented as they are in reality, in an objective manner; the internal auditor will not include in his report his own interpretations of the given situation but will be based on facts;clarity - the auditor's report is coherent, precise and clearly describes the current situation in the audited entity; the report is well structured and clear, and the terms used present the reality as precise as possible.Each internal audit engagement is customized to meet the needs of the entity at that time so that the structure and content of the audit report can vary substantially from one engagement to another.
OBJECTIVE The objectives of the internal audit engagements may be:
a) objectives pursued to improve the governance process
• promoting appropriate ethical conduct and appropriate values within the organization;
• ensuring effective performance management within the organization and taking responsibility;
• communicating information on risk and control to the appropriate structures in the organization and
• coordination of activities and communication of information between the board of directors, internal and external auditors and the management of the entity.
b) objectives pursued in the assessment of the risk management system and internal control
• meeting the strategic objectives of the organization;
• reliability and integrity of financial and operational information;
• effectiveness and efficiency of operations and operational programs;
• protection of assets; and
• compliance with laws, regulations, policies, procedures and contracts.
c) objectives pursued in the consultancy engagements
• evaluating the effectiveness of risk management, control and governance processes;
• improving the risk management processes within the organization through a systematic and methodical approach.
PROCEDURES Usually, the internal audit report is based on two essential points: risk assessment and/or assessment of the internal control system. In order to assess the risks, the internal auditor:
• identifies the auditable activities/operations in the entity;
• identifies the risks associated with the activities/operations;
• assesses the risks, quantifying the probability of occurrence and the impact of the risk.
In order to evaluate the internal control system, the internal auditor:
• determines how each activity/action identified functions;
• establishes the internal controls expected for each activity/action and risk;
• identifies the existing internal controls;
• evaluates the conformity of the internal control system.
These procedures of the auditor are based on a thorough knowledge of the audited entity, obtained by applying questionnaires to the relevant persons in the audited entity, through interviews, observation, inspection, analysis of relevant documents (such as organizational charts, organizational and operating regulations, internal policies and procedures, diagrams of operational flows, etc.).
STANDARDS In carrying out internal audit activities, the auditor shall comply with the International Standards for the Professional Practice of Internal Auditing (ISPPIA) issued by the Institute of Internal Auditors (IIA Global) and recommended by CAFR to its members.
ETHICS The auditor shall comply with the ethical principles mentioned in the Code of Ethics, namely: Integrity, Objectivity, Professional competence and due care, Confidentiality and Professional Behavior. Moreover, the auditor shall preserve independence both in fact and in appearance.
About
The managing director of IKONA AUDIT is Mihaela Mocanu, Lecturer PhD at the Bucharest University of Economic Studies, Department of Accounting and Auditing.
Mihaela Mocanu is member of the following professional bodies:
• Since 2016 Financial Auditor, Chamber of Financial Auditors of Romania
• Since 2012 Chartered Accountant, Body of Expert & Licensed Accountants of Romania
• Since 2014 Fiscal Consultant, Chamber of Tax Consultants in Romania
Mihaela Mocanu has the following professional experience in the private sector:
April 2016-ongoing Managing Director, IKONA AUDIT SRL
Mar. 2012–Feb. 2016 Senior Auditor, UHY Audit CD SRL
• Statutory audits for companies from the following industries: services, IT&C, constructions, agriculture, wholesale, haulage, gaming etc.
• Audit-related services in compliance with ISRS 4400 for financing through POSDRU 6.1, 2.1, 2.2, 2.3, UEFISCDI, CNCS, FP7
Sept. 2008–Oct. 2009 Junior Auditor, Adevaris Audit S.R.L.
Jun. – Sept. 2007 Accounting in the Finance Department (part-time), Billa Romania
Aug. – Sept. 2007 Assistant Manager in the Technical Department, Billa Romania
2006-2007 Internships in different companies, mainly banks
Spoken languages: English (C1), German (C1), Modern Greek (A2), Spanish (B2), French (B2), Italian (A2), Romanian (native).
Contact
IKONA AUDIT SRL
Bucharest, Romania
[email protected]