EU Accounting Directive and Audit Regulation: Financial Reporting with Document Integrity

We can help you respond to the standards in these regulations that mandate accurate, reliable, and accessible financial statements. Our logic is simple: even in the requested accessible environment, you can be assured that your files were not tampered with, and we will provide evidence to support your claim.

The compliance requires you to follow these pillars of document integrity and authenticity, but we integrate them into the results of your usual operations. That means that you won’t have to train your team extensively, change workflows, or add more time to your business activities. We make integration seamless and cost-effective for any enterprise that wants verifiable authenticity in its systems.

What establishes this credibility as a standard is a continuous push from directives, regulations, and laws to steer the market in that direction. In that sense, it goes beyond basic numbers and veers towards creating a structure that outputs trust in the financial system.

Streamlining Authenticity and Trust in Compliance

The EU Accounting Directive 2013/34/EU dictates frameworks for financial reporting. Among all the guidelines and rules presented across its content, we can identify a strong underlying premise: businesses should assemble their annual financial statements and management reports with accuracy and accessibility as their top priorities. The way to achieve this goal is to create a presentation standard. If there is a standard that can pinpoint these priorities, then we can truly ensure a line of consistency across enterprises.

From idea to goal and from goal to standard, we can become capable of reducing discrepancies, strengthening market confidence, and accelerating any verification process. While companies are expected to take responsibility for these improvements, regulators still play a key role in driving and enforcing them.

Let’s also consider more than just formatting. How do businesses develop high standards of authenticity without inflating costs and disrupting operations? Here is where we want to present Truth Enforcer. The solution that can make authenticity verifiable with integrity assurance without the previously mentioned damages. Besides the underlying benefits of authenticity across all your digital assets, the flexibility to integrate with any system or have ready-to-use solutions with SharePoint and Salesforce reinforces this solution’s benefits.

On the other hand, you have the Audit Regulation (EU) 537/2014, more targeted to public-interest entities (PIEs). The premises for credibility and high standards divert slightly more from statutory audits, but it still aims to bolster the credibility of financial documentation. More than accuracy, it goes into trustworthiness.

We come here to another question yet again. Maybe this time is more aimed at IT professionals than business owners. How are you going to support auditors in verifying document authenticity efficiently? Of course, damaging operations or exploding costs continue not to be an option.

Once again, Truth Enforcer can help. As a blockchain solution, we empower you to secure trust in parallel with your workflow. From one side, you have the blockchain technology where "(…) once a block is added to the blockchain its data cannot be modified, forged, replaced, or falsified"; and, from the other side, the process resembles a stamp that can be done automatically once you upload the file to a specific folder. From the upload and stamp, you get the unchangeable audit trail. That’s it – simple and powerful.

The payoff is twofold: you get a streamlined procedure that allows you to verify the authenticity of a financial (or other) document and a tamper-proof record that serves as evidence when facing compliance issues – efficiency and trust in one.

Navigating the Business Market and Regulatory Compliance

As you might summarize, the EU’s regulations that connect to the financial markets make credibility non-negotiable.

For example, consider a mid-sized enterprise preparing its annual financial statement. With Truth Enforcer, the file is hashed (imagine a stamp here) either as you finish it or by uploading it to a predefined folder, and that hash is logged. Weeks or months later, during an audit, the auditor can verify the authenticity of these files and validate their integrity, provided the hash hasn’t changed – indicating that the record was not altered. If the match is made and authenticity is confirmed, then you don’t need additional steps or rework – you are certified of its integrity immediately.

The benefit in this scenario? You maintain a truth chain by having digital certificates (hashed files) that are secured by an independent notary (blockchain of your choice) without overhauling your workflow. Since you can integrate seamlessly into existing systems and it requires minimal training, the time saved and reduced costs are also considerable. Instead of a burdensome add-on, you get an ecosystem within your operations.

In summary, the EU Accounting Directive and Audit Regulation sets a high bar for financial reporting but also provides an opportunity to strengthen your environment if you are strategic about choosing the right solution. The Truth Enforcer ensures document integrity and authenticity, setting you up as a compliant enterprise. Contact us – we look forward to connecting software with you!