Business – is a complicated thing. It is difficult to manage time for interaction with suppliers, check quality of works, solve matters with employees, pay taxes on time, etc. Besides, all of this should be properly documented.
As a result, every business gradually gains its own number of risks nobody thought through and stay clueless about them, but they can affect the company negatively.
To identify existing risks and ways to solve them, it is recommended to perform due diligence from time to time
Typical aspects of company activity, analyzed during an audit:
This type of audit concerns examination of acquisition/sale of assets, checking existence/absence of arrests and other encumbrances on current company assets, etc. Quite often, individual assets of the company, especially with regard to intellectual property, were acquired or sold with legal risks: lack of proper evidence of the acquisition of assets, acquisition of a license instead of ownership, acquisition/sale of assets under contracts that may be invalidated by the court, etc.
Business activity audit
Legislation contains many minor restrictions, which must be observed, if you do not want to break the law. For example, did you know of the need to register a trademark purchase agreement? If not, you just found out. It would seem – why register it? However, non-compliance to such requirement, like many others, does not mean the illegitimacy of the company’s activities, but entail certain risks leading to unnecessary costs and proceedings.
Business activity audit will be helpful for companies, which participate in export market: every country has different legislation, so legal activity in one country may be illegal in other. VigoLex assumes that it is better to have a head start and perform business activity audit, than wait for a notice of breaking the law from foreign authorities.
Contractual relations audit
In our realms an incredibly popular option – is working with sole proprietorship employees. Thus, how setting up contracts should be properly formalized? Besides, when contracts with suppliers are not terminated – are your rights protected per those contracts? Is there effective procedure of bringing suppliers to liability for violation of the terms of agreement? Due diligence may give an answer for all these questions.
Audit of company management activity
Management activity – is a wide-ranging concept. From personnel management to operation management and internal policies – all of this is a management activity. According to VigoLex team experience, this field of company’s activity contains more risks than any others: incorrect formalization of personnel management, which is the reason for penalty from authorities, ill-conditioned internal policies, mistakes in constitutional documents – business owner should know all of this, as forewarned is forearmed.
VigoLex team is sure that proper audit for existing risks can not only raise the status and investment prospects, but also advance the rhythmic development of business in future.