Criminal Law Audit of a Business

Criminal liability is borne by individuals. For an owner, general director, finance director, chief accountant or employee, the relevant factors are that person's specific actions, actual role and guilt. A position held, ownership of an interest or involvement in approving a decision does not in itself mean that there are grounds for criminal liability.

The group structure, working through intermediaries and the arrangements for payments and for engaging staff do not in themselves indicate a crime. The circumstances identified are compared with the elements of specific offences, and gaps in the information are noted in the opinion.

The same circumstances may require a separate tax, civil law or other assessment.

Changes in the company's operations, legislation or case law may require the analysis to be updated.

• Opinion on the risks identifiedA list of risks by period and area of activity, with recommendations on the order of further steps.
• Assessment of personal risksAn evaluation of the role of owners, executives and employees in the decisions reviewed, indicating the circumstances that require attention or further clarification.
• Changes to documents and proceduresRecommendations and agreed draft amendments to contracts, decision-making procedures and internal regulations that comply with the law and accurately reflect the actual relationships; adoption and implementation remain with the company.
• Guidance on possible questionsExplanations of circumstances that may attract the interest of inspecting authorities, and of materials relevant to the legal position.

The outcome of the service is the work performed within the scope agreed with the client.

1. Materials

   The work is built on the company's documents and information; the following points are relevant.

   • Group structureInformation on the legal entities, areas of activity and periods proposed for inclusion in the audit.
   • Management documentsResolutions of management bodies, powers of attorney and documents on the allocation of powers.
   • Transactions and settlementsContracts for significant transactions, and information on counterparties, performance of obligations and payments.
   • Staff and contractorsDocuments on how relationships with employees and contractors are formalized, and on settlement and payment procedures.
   • InterviewsAgreeing the participants in and timing of interviews with executives and key employees.
   • Formalizing the engagementInformation needed to identify the client, check for a possible conflict of interest and enter into an engagement agreement with the advocate.

2. Assessment

   On the basis of the materials, the risks, the possible solutions and their consequences are identified.

3. Plan

   For the chosen option, a plan is drawn up: the sequence of steps, timing and scope of work.