Auditing operation No. 04/12
Closing account of the State Budget chapter – the Office for Protection of Competition
The auditing operation was included in the Annual Audit Plan of the Supreme Audit Office (hereinafter referred to as „SAO“) for the year 2004 under No. 04/12. The auditing operation was managed and audit conclusion drawn up by Mr Jan Vedral, the Member of the SAO.
The aim of the audit was to examine whether the financial and accounting statements submitted by the Office for Protection of Competition as the basis for the closing account of the State Budget chapter were correct.
The operations that are the subject of bookkeeping and influence the value of closing balances in the financial statements as at 31 December 2003, as well as previous accounting periods in case of relevant connections, were subjected to audit.
The audited body was the Office for Protection of Competition (hereinafter referred to as „OPC“).
In accordance with the recommendation of the INTOSAI audit standards, the maximum degree of bad recording that the users of accounting statements may deem acceptable (the materiality threshold) was set at 2 % of the value of the total expenses of the OPC in 2003, which amounted to CZK 88,343,730. The materiality thresholds were thus fixed at CZK 1,766,870. The total rate of inaccuracy found in the financial statements as at 31 December 2003 was CZK 215,420, i.e. far below the set materiality thresholds.
The OPC’s financial statements provide a true and fair view of the object of accounting for 2003 in all important regards, are consistent with the Act on Accounting and relevant regulations and was a reliable basis on which to compile the chapter’s closing account under Decree No. 419/2001 Coll. However, the Office should perform corresponding corrections in its accounts to eliminate the minor shortcomings found.