Mercedes Benz Audit Report Analysis

This assignment analyzes the annual audit report of Mercedes Benz, focusing on its financial statements, internal controls, and the auditor's opinion. The report highlights the company's adherence to German generally accepted accounting standards and provides a clear unqualified opinion. The analysis also compares audit opinions from previous years, demonstrating consistency in the auditing process.

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Date: 15 October ,2017

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Contents
Question 1…………………………………………………………………………………….2
Refrences……………..…………………………………………………………................4
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AUDITOR OF MERCEDES BENZ
Mercedes Benz is one the largest automobile manufacturer in the world and is one of the largest
divisions of the company Daimler AG. The annual revenue of the company runs into billions and the
books of the company are audited by the KPMG Global services, which is one of the largest audit firms in
the world. The company provides audit and consultancy services to its clients and is based all over the
world. The main purpose of audit is to state whether the books of the company are prepared
considering all the necessary standards and the financial statements of the company are showing a fair
view of the same. It checks the overall aspects of the financial statements and looks for any errors that
might be present in the books of accounts (Belton, 2017). These financial statements are very important
for the users and they depend on the same to take major decisions regarding the company and its
various dimensions. In this case the auditors have issued an independent audit report that is issued in
the annual report of the company. The company is a part of the company Daimler and the audit of the
Mercedes Benz department is shown in the annual reports of the company Daimler (Mayntz, 2017).
The audit report covers various aspects of the financial statements of the company that are
prepared on a consolidated basis. The audit report states that the auditor has audited the consolidated
annual reports of the Daimler AG, Stuttgart, and its subsidiaries, and that includes Mercedes Benz. The
board of management of the company is responsible for preparation of the annual reports of the
company and the auditor issues and their opinion on the same. In this case the auditor has given a clear
report which states that the books of the company are free from all kind of errors and there are no
reservations in the same (Tysiac, 2017). In case the auditors are not able to get the required details to
form an opinion or are unable to get help from the management of the company during the process of
audit, they can issue unqualified or adverse reports. The auditor checks the various departments of the
company, the various internal controls that the management has employed in the company and
comment on the validity of the same (Tysiac, 2017). In case of the given company, the auditors are
having years of experience and have closely scrutinized each and every department of the company and
have given an opinion that states that the books of the company are prepared as per the German
generally accepted standards. They have conducted their audit under the section 317 (2) HGB. There is
also a section in the audit report that consists of the auditor’s responsibility and the auditor’s opinion is
also highlighted clearly. Pursuant to Section 322 (3) sentence 1 HGB, they have stated that the audit
report does not consist of any reservation.
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On comparing the audit opinion given in the last two three years it can be said that the auditors
have been highly consistent in their performance. They have been very good in their work and have
conducted the audit properly considering all the necessary details that they need to check to form an
opinion on the consolidated statements (Gartland, 2017). The management of the company have been
very helpful to the auditors and have given their utmost support, they have not highlighted that they
have faced any kind of issues because of the auditor. They have given clear audit reports through the
years and have highlighted the necessary parts that were needed. An extract from the same is attached.
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References
Belton, P., 2017. Competitive Strategy: Creating and Sustaining Superior Performance. London: Macat
International ltd.
Gartland, D., 2017. The importance of audit planning. Journal Of Accountancy.
Mayntz, R., 2017. Networked Governance. s.l.:Springer.
Tysiac, K., 2017. Rulemaking gives auditors a chance to provide more insight. Journal of Accountancy.
Tysiac, K., 2017. Tactics for driving quality in a single audit. Journal Of Accountancy.
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