Revision af Andelsboligforeninger

Lise Kuld

Student thesis: Master thesis


On a relatively short period of time, cooperative housing associations in Denmark, has been subject to many changes, which has led to increased monitoring from Medias, exposing the credibility of the associations. This has led to an increased focus from politicians, which has made adjustments to the legislation, also in regards to the preparation of the financial statements for the cooperative housing associations. The Danish Business Authority has in December 2010 published a guidance covering considerations in regards to prepare a financial statement which is transparent for the reader. However, in this thesis I discuss the legal hierarchy, as it seems that the Danish Business Authority in majority considers the guidance to be primary to any other legislation in this field. And it seems that the Danish Business Authority has not considered this problem and how it should be handled in practice. Further with reference to a considered gap between shareholders expectations and the purpose of the audit, it is highly recommended that this problem should be considered by legislators, and the clause in the legislation regarding housing cooperatives, “Lov om andelsboligforeninger”, the requirement of presenting the value of the shares, “Andelskrone”, as a disclosure to the notes, should be considered, and the presentation of the “Andelskrone” could be presented in a separate document not covered by the financial statement and the audit. Finally, this thesis also discusses the high level of inherent risk in regards to fair value as measurement for the property and financial instruments in the financial statement. From the auditors’ perspective, it causes a high level of inherent risk of material misstatement on the valuation objective. As the property and financial instruments are the audit objectives with high level of risk, and therefore the auditor must conduct a more thorough investigation of these objectives.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2013
Number of pages178