Due diligences

An audit is a review of the company’s financial documents and stocks to show that it is being honest in the way it presents itself.

An audit is an evidence gathering process. Audit evidence is used to evaluate how well audit criteria are being met. Audits must be objective, impartial, and independent, and the audit process must be both systematic and documented.

There are three types of audits: first-party, second-party, and third-party. First-party audits are internal audits. Second and third party audits are external audits.

Second party audits are external audits. They are usually done by customers or by others on their behalf. However, they can also be done by regulators or any other external party that has a formal interest in an organization.

Third party audits are external audits as well. However, they are performed by independent organizations such as registrars (certification bodies) or regulators.

Target for our customers: guarantee the shareholders’ and third parties’ financial information.

A statutory auditor may have to examine the efficiency, effectiveness and economy of operations that may also include all the non-financial controls. Statutory audit refers to a legal requirement to review the financial records of a company or of the government, in order to check its fairness and accuracy.

Our cross-disciplinary competences in counselling, litigation management, contributions and mergers auditing… strengthen our action as statutory auditors.

We audit firms that operate in various fields such as services, industry and distribution.

Moreover, we are notified of audit criteria changes as soon as they occur, as Antoine Legoux has been a board member of Paris French Auditor Institution.

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Contractual Audit

An auditor can also intervene under unique circumstances which arise from legal proceedings. The scope of the audit is then defined as contractual.

The Merger & Acquisition Process can be broken down into two main phases:

The first step is to assess your own situation and determine if a merger and acquisition (M & A) strategy should be implemented. It is also useful to ascertain if the company is undervalued. Therefore, the pre-acquisition phase will often include a valuation of the target company by the auditor (due diligence Phase I). In the preliminary phases of M & A, we will calculate a total value for the combined company. You have already calculated a value for your company (acquiring company). We now want to calculate a value for the target as well as all other costs associated with the M & A.

The most common approach to acquiring another company is for both companies to reach agreement concerning the M & A; i.e. a negotiated merger will take place.

Once we start the negotiation process with the target company, a much more intense level of due diligence (Phase II) will begin. Both companies, assuming we have a negotiated merger, will launch a very detail review to determine if the proposed merger will work. This requires a very detail review of the target company – financials, operations, corporate culture, strategic issues, etc.

If all goes well, the two companies will announce an agreement to merge the two companies. The deal is finalized in a formal merger and acquisition agreement.

Legoux & Associés implement a level of diligence that favors the search for essential data and key criteria, enabling the manager to make an informed decision within a short timeframe.
Legoux & Associés’ multidisciplinary and experienced teams can accompany customers at each stage of an acquisition process. They will isolate the factors likely to call into question the transaction and make sure the transfer price is right.

Our assets: our cross-disciplinary competences in counselling, litigation management, statutory audit… strengthen our action as contract auditors. This is the reason why we are entrusted with contractual audit missions, with groups of international size as well as SMBs, operating in various fields such as services, industry and distribution.

Moreover, we are notified of audit criteria changes as soon as they occur, as Antoine Legoux has been a board member of Paris French Auditor Institution