In order to verify the appropriateness of spending by foreign payments under double taxation agreements and in other cases in which according to the Internal Tax Regime Law it has been established the need for certification from independent auditors that are represented in the country.

 

The independent auditor must verify such costs and expenses, and the local firm certifies the appropriateness of the expenditure and the need to generate income if necessary.

 

The report developed by the independent auditor has two sections, one by the auditor based on abroad, and one by the auditor based in Ecuador. To meet the requirements, we offer our customers the MGI worldwide network around the world which will provide high quality service and the fiscal support of transactions with countries in which Ecuador has agreements to prevent double taxation.

Expressing opinions on financial statements and attending the management in the report of its financial situation. Our auditing approach is based on the knowledge of the operations that the client conducts and the understanding of his internal and external scope of action, which allows us to determine the areas of potential risk and to develop an objective audit.

 

Our auditing approach considers all the activities of the Company (financial, accounting, administrative and operative) which allows us to prepare much more beneficial letters of recommendation to the management.

The lack of consistency, comparability and transparency of financial statements prepared in different countries using different standards and accounting principles has had negative consequences for the confusion in interpreting financial statements. Because of these trends it has been developed a set of global accounting standards - International Financial Reporting Standards IFRS.

 

For the implementation of IFRS, based on the experience of the IFRS MGI team, we support your Company in the following:

 

• Establish a strategy and global vision IFRS, including a map of implementation to achieve the following objectives.
• Assess options and policy alternatives for first-time application, and use this information to establish clear policies and effective implementation.
• Create project teams in the enterprise / business line to provide continuous technical and logistic support.
• Conduct a survey of accounting policies used to identify the fundamental differences in accounting principles that could affect the Company, to focus the efforts towards these key areas.
• Develop training content and provide training to personnel involved in the transition.
• Establish guidelines for the business process and development of systems that allow efficient and effective management of information.
• Incorporate appropriate changes to current accounting policies and procedures manuals.
• Create a process of reconciliation between the Financial Reporting Standards - IFRS and Ecuadorian Accounting Norms - NEC to confirm the integrity of the data.

This contemplates the preparation basic financial statements and advising to small companies on how to plan the optimization of the internal control, administration of cash, control and analysis of costs and expenses, financial analyses and evaluations.

 

Our carefully done work is reviewed by our partners responsible for each area, the work is planned by our managers which are in charge of the supervision of the work in the field, which reassures the strict application of our professional norms.

Our task includes the preparation of the Transfer Pricing Report, as required by the law, which obligates the company to certify that their transactions with foreign affiliates or with companies created in tax heaven countries were made under normal market conditions between independent parties.

 

As a result of our work, we will deliver the following:

 

• Transfer Pricing Annexes.
• Transfer Pricing Integral Report.

We work next to the client in the determination of strategies to lower tax costs, and obtain knowledge and advantage of the fiscal incentives available, always framed within the legal dispositions.

 

Additionally we can assist the management in the preparation or revision of the tax declaration, for the company or its executives. We are permanently attending the relations and complains of the client with the fiscal authorities, etc.

We advise our clients on how to improve its countable, operative and financial systems, for which we can work in the following areas:

 

• Organization Systems, ready to determine and design a more suitable organization model for the fulfillment of the fixed objectives, establishing functions and responsibilities to each one the positions and units.
• Countable and administrative procedures booklet, directed to provide to each one of the positions a way to carry out its tasks fast and efficiently.
• Costs and budget Systems, which are implemented considering the necessities of the companies, elaboration of a standard cost system, budget of raw materials, and its respective controls.
• Evaluation of investment projects, diminishing the risks of our clients in the opening of new branches and/or agencies, evaluation of companies for investment and/or acquisition, analysis of investment of the stock market, etc.

According to the Company's the legal regulations, we carry out the functions of vigilance officers of Companies making periodic visits for revision and administrative and financial control, as well as the pursuit of the fulfillment of the resolutions of the Directories and Meetings of Shareholders or Partners.

Providing our clients with continuos support and advice in order to give permanent tax and accounting solutions to problems identified within the Company's operations. These assessments, shall be agreed upon days and hours, depending on the operational needs of the management of the Company.

Because of the changes that periodically are taken place in our legislation, as well as new uprisings and changes in the countable and financial norms which prevail to the companies, our firm has structured a training program for the professional update of the personnel of our clients, providing courses, seminaries and conferences whose dates of accomplishment are communicated to all of our clients for their participation.