Udvidet gennemgang: En analyse af bankernes krav til sikkerhed på årsregnskabet

Anne Julie Berg

Student thesis: Master thesis


On 6th December 2012 a bill on expanded review was passed by the Danish government. The purpose was to enforce a declaration standard specifically adjusted to the small businesses. The declaration standard would be an alternative to businesses in reporting class b, which could hereafter choose an intermediate between original auditing and review. The businesses choosing the declaration standard should be able to achieve administrative savings on 25 pct. in administrative expenses; a total saving of 236 million Danish kroner. 'Expanded review' consists of review after ISRE 2400 (revised) along with four supplementary actions that are to be carried out as long as they are relevant for the businesses. It was evident from the government that not all businesses would be able to choose expanded review. The banks of some of the small businesses would still demand auditing as a consequence of the tightening of the credit procedure due to the financial crisis. On that basis the following research question will be studied: "Does the declaration standard of expanded review meet the banks demands for assurance in the annual accounts?" The present paper will initially examine the differences and similarities between the three declaration types: auditing, review and expanded review with regards to purpose, action and conclusion. Hereafter the demands for audit assurance made by the banks are analyzed using extensive studies of the area along with private qualitative interviews with larger Danish banks. The paper shows that the majority of the interviewed banks were not able to accept their client's choice of expanded review of the annual accounts as sufficient basis for granting of credit. This is due to the fact that expanded review does not offer as high a degree of assurance as auditing. That no verification of items of an account for stock and debtor has been made is a particularly decisive factor for the banks since they often have collateral in these items. The lower the collateral the banks receive through the auditor's certificate, the higher a security is demanded from the businesses in the form of collateral. However, auditing cannot stand alone. Private studies and assessment of the business on the basis of knowledge of the trade are also of great importance to the banks. This shows that the banks demand an audited account, but that this is not sufficient as the banks also to a great extent rely on their own studies.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2013
Number of pages113