Audit Expertise in Action: Four BDO Projects Beyond the Traditional Audit
Audit Expertise in Action: Four BDO Projects Beyond the Traditional Audit
From restructuring an automotive business and implementing IFRS 16 to analysing banking data and reviewing internal controls.
These are just some of the challenges our audit professionals help businesses address. Through four real-world projects, we demonstrate how BDO supports companies in navigating complex changes, identifying risks and developing solutions that work in practice.
Sharing his experience is Jozef Lukča, Audit Director at BDO, who has worked on a wide range of projects across different industries.
When audit expertise goes beyond financial statements
An auditor's work involves far more than reviewing financial figures and accounting records. It requires an in-depth understanding of business operations, internal processes, information systems and the risks that can affect a company's performance.
This expertise becomes particularly valuable when a business is undergoing restructuring, introducing new accounting requirements, seeking deeper insights from its data or reviewing the effectiveness of its internal controls.
At BDO, we apply our audit experience to specialised projects that require a combination of financial, operational and analytical expertise.
The following four projects illustrate how this approach can deliver practical value to businesses facing different types of challenges.
Demerger of an Automotive Business: Supporting the CFO Through a Complex Restructuring
The client's challenge
An automotive company was planning to separate and subsequently sell part of its business in Slovakia.
In the automotive sector, ordering, invoicing, logistics and communication with business partners are largely automated and closely interconnected. A change to one process can therefore affect numerous other activities essential to the company's day-to-day operations.
The client needed to manage the demerger not only from an accounting perspective, but also in a way that would preserve operational continuity and maintain relationships with its business partners.
Our approach
As part of the project, Jozef Lukča temporarily joined the finance team to provide specialist support to the company's CFO.
Our involvement included:
- Mapping existing processes and identifying their interdependencies.
- Assessing the accounting, tax and operational implications of the demerger.
- Developing and evaluating potential restructuring scenarios.
- Planning the timing of communications with customers, suppliers and other business partners.
- Evaluating the impact of the proposed changes on the company's financial statements.
Another important aspect was determining how individual transactions, contracts, customer and supplier relationships, data and accounting items should be allocated between the resulting parts of the business.
The outcome
The project resulted in the successful separation of part of the business while maintaining operational continuity and sound relationships with the parties involved.
Value delivered: Specialist support for the CFO, early identification of potential risks and a coordinated approach to managing a complex business transformation, taking into account both financial and operational implications.
"In a restructuring, it is not enough to understand what the company wants to change. You also need to identify everything connected to the process and everyone who may be affected."Jozef Lukča · Audit Director at BDO
IFRS 16 Implementation: Turning New Accounting Requirements into a Practical Technology Solution
The client's challenge
The introduction of IFRS 16 brought significant changes to lease accounting. For businesses, this meant reconsidering not only their accounting practices, but also data requirements, internal processes and existing information systems.
Understanding the new standard was only part of the challenge. Its requirements also needed to be translated into a functioning solution capable of processing relevant data correctly and reflecting the results in financial statements.
Our approach
Jozef Lukča was involved in the development, testing and implementation of a solution related to IFRS 16.
The project included developing different scenarios, testing the proposed functionality and assessing whether the resulting calculations and accounting outputs complied with the requirements of the standard.
Successfully delivering the project required a combination of accounting expertise and an understanding of data, business processes and system configurations.
The value delivered
The project demonstrated how technical accounting requirements can be translated into a practical technology solution.
The auditor's role extended beyond interpreting the accounting standard to assessing the proposed solution, testing its functionality and evaluating its outputs.
"When accounting rules change, a business needs to incorporate technical requirements into its processes, data and system configurations."Jozef Lukča · Audit Director at BDO
Analysing a Bank's Loan Portfolio: Turning Complex Data into Actionable Management Insights
The client's challenge
Financial institutions manage vast amounts of data that may contain unusual transactions, exceptional lending terms or anomalies requiring further investigation.
When analysing a bank's extensive loan portfolio, the objective was to develop a tool that would help interpret the data, identify unusual cases and present the findings in a clear and accessible way.
Our approach
The project brought together audit professionals and technology specialists.
While the technical team was responsible for developing the analytical tool, Jozef Lukča designed its logic, structure and approach to data interpretation.
The tool was designed to identify:
- Unusual interest rates.
- Non-standard lending terms and conditions.
- Significant deviations from other cases within the portfolio.
- Data points requiring further analytical investigation.
The objective was not simply to process large volumes of information, but to identify the insights most relevant to audit procedures and management decision-making.
The outcome
The result was a tool that supported audit procedures while also providing analytical outputs for management reporting and the presentation of findings.
Value delivered: Greater visibility into complex datasets, more efficient identification of unusual cases and clearer analytical information to support management decisions.
"We can analyse what the data contains. The real value comes from turning those findings into information that management can use to make decisions."Jozef Lukča · Audit Director at BDO
Compliance Gap Analysis: Reviewing How Internal Processes Work in Practice
The client's challenge
As part of a cross-border project, BDO reviewed the local branch of a company operating in the insurance and financial product intermediation sector.
The client had established internal procedures, responsibilities and control mechanisms. However, it needed an independent professional assessment of how these rules were applied in daily operations and whether they met the relevant legal and regulatory requirements.
Our approach
The BDO team reviewed the client's documented processes and internal controls.
The team then compared the stated procedures with their actual operation and the applicable requirements.
The review focused on:
- Alignment of internal processes with relevant requirements.
- The effectiveness of internal control mechanisms.
- Differences between documented procedures and actual practice.
- Areas requiring stronger controls or improved documentation.
- Clear allocation of responsibilities across individual processes.
The outcome
The project resulted in a gap analysis that provided management with a clear overview of how the reviewed processes operated in practice.
The findings gave the company a basis for identifying weaknesses and taking appropriate measures to strengthen its internal control environment.
When Business Challenges Call for a Different Approach
Not every situation in which audit expertise can provide value fits within a conventional financial or accounting engagement.
Depending on the nature of the assignment, BDO can draw on the expertise of its specialist teams to support businesses across a broader range of areas.
Forensic Investigations
Reviewing suspicious transactions, conflicts of interest, data manipulation or potential breaches of internal policies. The aim is to identify relevant evidence and reconstruct the financial or operational circumstances of a case.
Mystery Shopping
Assessing whether employees follow established procedures, provide mandatory information and comply with consumer protection requirements during everyday customer interactions.
Whistleblowing and Internal Controls
Specialist support in establishing reporting procedures, investigating whistleblowing reports and assessing the effectiveness of internal control mechanisms.
Cybersecurity and Ethical Hacking
Working with technology specialists to identify system vulnerabilities and assess their potential impact on financial data, business processes and the internal control environment.
Financial Analysis in Litigation
Analysing financial evidence, quantifying economic impacts, reviewing calculations of damages and reconstructing financial transactions in the context of legal disputes.
Temporary Finance Team Support
Providing experienced professionals to support restructuring projects, information system changes, accounting standard implementations or temporary shortages of in-house expertise.
Sometimes an Auditor's Work Takes Place at –20°C
Jozef Lukča's experience during an inventory count in a cold-storage warehouse illustrates just how unpredictable an auditor's working environment can be.
At minus 20 degrees Celsius, even an ordinary ballpoint pen proved unreliable.
"We were given fur hats and coats and got on with the job. We had to record the inspection results in pencil because, only once we were inside, did we discover that an ordinary pen simply would not write in such cold conditions."Jozef Lukča · Audit Director at BDO
The team was also surprised to discover that the warehouse was not automated and that a forklift operator was working in such extreme conditions.
This experience is a reminder that a thorough audit often requires more than reviewing documentation and financial statements.
Sometimes, gaining a genuine understanding of a client's business means visiting its operations and seeing first-hand how processes actually work.
Specialist Support Where Businesses Need It Most
Businesses do not always need a large-scale consulting project or a long-term advisory engagement.
Sometimes, they simply need an experienced specialist to help them navigate a challenging period, solve a specific problem or strengthen their existing team.
Audit expertise can prove valuable during corporate restructuring, information system changes, accounting standard implementations, management reporting projects or periods when a CFO requires additional specialist support.
What all four projects have in common is the ability to identify connections, understand risks and translate professional expertise into practical business solutions.
At BDO, we bring together professionals from audit, accounting, tax, legal, technology and business advisory teams according to the specific requirements of each assignment.
This multidisciplinary approach enables us to assess challenges in a broader context and develop solutions tailored to each company's needs.
"I would encourage businesses to simply tell us what is concerning them. Those who ask questions will find answers — and at BDO, practical solutions too."Jozef Lukča · Audit Director at BDO
Facing a Similar Challenge in Your Business?
You do not need to have a fully defined project brief or know exactly which category of advisory services your challenge falls under.
Whether you are planning a restructuring, reviewing internal processes, seeking greater value from your data or looking to strengthen your finance team, BDO professionals can help you assess the situation and identify potential solutions.
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