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Auditing has traditionally been a discipline with determinable objectives, an established methodology and an established regime of regulation.

An audit is intended to enhance the credibility of the information in financial statements by evaluating whether the financial statements confirms in all material respects with suitable criteria, thereby improving the likelihood that the information will meet the needs of an intended user.   

The advantages of an audit are:

• The Company will have an auditor’s report on financial statements for certain period of time that certified financial position, current results from activities, cash flows, share capital and their changes signed by certified auditor;
• The shareholders and management of the company will receive an assessment from an independent expert about the control procedures and their effectiveness;
• The users of the financial statements, as for example State authorities, financial institutions, investors, creditors will receive certain assurance about the collecting of taxes, debts and future income from dividends or interest from an independent source – registered auditor.  

The annual financial statements are subject of an audit and includes the following:

• Balance sheet;
• Income statement;
• Statement of cash flow;
• Statement of equity; and
• Notes, comprising a summary of significant accounting policies and other explanatory notes. 

According to Accountancy Act art.23 p.1, the Companies that are registered under Bulgarian Trade Law are obliged to prepare the annual financial statement, as at Year ended 31 December, in thousand Bulgarian leva.

The fees about audit services are subject of an agreement between the parties and directly depend from the activities of the company, variety and complexity of the transactions, the organization in accounting function and the numbers of the hours of the auditors necessary to be used in the process of auditing.