In April, students from the Financial Management Study Programs were given a practical insight into the work of the auditing and tax consulting firm BDO Assurance GmbH. Experts shared their experiences with the students in two guest lectures.
Review of assets in balance sheets (Impairment)
The experienced auditors René Berger and Kevin Kreuzer worked together with the Master’s students of the Financial Management & Controlling program as part of the ‘International Accounting’ course to develop the implementation of impairment tests. These tests check whether the fair value of asset items is below the value according to the balance sheet (book value) – i.e. whether a ‘decline in value’ has taken place. The necessary (unscheduled) write-downs associated with this decline in value can then lead to a massive reduction in company profits.
Current developments, such as the interruption of supply chains or the increase in market interest rates, which can trigger a corresponding decline in value, were made tangible for the students by means of impairment tests of two Austrian energy-producing companies.
Dos and Don’ts for auditor’s reports
Students of the Bachelor’s program in Finance, Accounting & Taxation spezialising in ‘Auditing’ were given an insight into audit opinions and audit reports by auditors as part of the audit of annual financial statements. The lecturers, also René Berger and Kevin Kreuzer, worked with the students on the preparation and composition of audit opinions, whereby the students were able to apply their knowledge immediately using best and bad practice examples from the lecturers’ many years of auditing work.
The final point was a lively discussion on the importance and significance of audit reports and audit opinions based on current insolvency and criminal law cases in Austria and Germany.
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