Auditors, auditing: Prospectus controls, prospectus assessments

Prospectus controls/prospectus assessments

Prospectus control is used to assess the content of prospectuses for publicly offered capital investments. The auditor must observe the generally accepted standards for the proper assessment of public capital investments (IDW S 4). In the case of prospectus controls, we see ourselves not only as auditors who, from the perspective of an informed and moderately prudent investor, confirm, with reasonable certainty, that the prospectus accurately contains all information needed to make an investment decision but also show our clients potential areas for improvement in terms of the content and design of the prospectus. We work closely with our clients and take their individual needs into consideration.

Contact persons at KONLUS for prospectus controls :

• Carl Erik Koehler (auditor, tax consultant, certified valuation analyst (CVA))
• Alexander Neu (auditor, tax consultant)

When conducting the audit, we draw on a pool of experienced staff who are also familiar with caring for closed-end (asset management) funds.

The audit is based on the standard developed by the German Institute of Public Auditors (IDW): generally accepted standards for the proper assessment of prospectuses for publicly offered capital investments (IDW S 4).

The aim of the assessment is to ascertain, with reasonable certainty, whether the prospectus accurately contains all information needed to make an investment decision and whether this information is not only clear and comprehensive but also presented in a logical manner. Therefore, as part of the assessment, we make statements in relation to the completeness and clarity of the information contained in the prospectus while taking into consideration the plausibility of the value judgements contained in the prospectus, the persuasiveness of the conclusions drawn and the presentation of the asset, financial and profit situation and associated risks, which are primarily made by evaluating a sample.

The assessment is made from the perspective of a moderately informed and moderately prudent investor who has a basic understanding of economic conditions in relation to the investment being publicly offered.

In terms of the economic benefits and tax implications associated with the investment, no guarantee is given in the context of our audit work because these depend on uncertain future developments. The impact of such an investment on each investor's circumstances is not the subject of our assessment of a prospectus. In other words, it is not an individual assessment of the opportunities and risks associated with a particular investment against the backdrop of individual circumstances and appropriate, independent investment advice.

In our audit procedures, we focus on the completeness, clarity and accuracy of the forecasts contained in the prospectus, the statements made in relation to tax information, and how the opportunity/risk profile is derived and presented.

We publish our audit findings in the usual manner (that is, in a prospectus report).

This report must not be passed onto third parties, either wholly or in excerpts, without our prior consent. Subject to approval, prospective investors, investment intermediaries and other third parties may, in individual cases, receive the prospectus report solely through an information agreement concluded separately between the interested party and the author of the report.

In the context of the relevant professional rules and regulations, audit procedures are not intended to detect embezzlement or other criminal offences.

In general, the prospectus assessment is not associated with assessing the adequacy of individual remuneration. Furthermore, a definitive assessment of the legal existence of contracts and the absence of defects in such contracts is not part of the prospectus report.

We would be happy to provide further information in a private appointment with you. 

We provide the majority of our auditing and tax consultancy services to clients in Bergisch Gladbach, Cologne, Leverkusen, Gummersbach, Bonn, Düsseldorf, Remscheid, Solingen, Wuppertal and neighbouring regions. However, we also operate throughout Germany. Our branch office is located in Berlin.