The idea behind this paper has a rather long history. During the internet boom, the opportunity arose in 1997 of working together with ORACLE experts on major internet projects. In 1998, this turned into a company and there followed many projects and turbulent trade fairs. At the same time, the dissertation on the topic of the web trust audit was finished at the Vienna University of Economics and Business Administration in 2001. The introduction of quality assurance as a consequence of the Sarbanes Oxley Act, with the concomitant proliferation of checklists and procedures, provided the stimulus for the development of software of our own and as an extension it very soon also became clear that the implementation of the international financial reporting standards (IFRS) for small and medium-sized businesses could be largely automated. The solutions on offer were of little help, for two primary reasons: 1. The business model of the audit is based on a calculation of hours and for exactly this reason auditing teams have been growing and procedures becoming more complex since the mid-eighties, quite in contrast to the opportunities presented by the rapid development of technology during this period. 2. The software on offer is either very rudimentary and limited to a collection of checklists, or it attempts to solve every conceivable problem, which leads to a Leviathan.

Dr. Richard Wittsiepe ist seit 1990 als Wirtschaftsprüfer und seit 1999 als CPA in eigener Praxis in Duisburg tätig.

European Accounting and Financial Reporting Environment.- General Developments within the European Union.- Theory of International Accounting.- Harmonisation of Accounting Systems in the European Union.- The 4th EU Directive/IFRS Framework Main Differences.- Financial Accounting and Reporting in the European Union.- Small and Medium-Sized Companies Analysing the Transition Process.- The Project of the IASB for Small and Medium-Sized Entities.- Hierarchy of IFRS Statements.- The Audit Process Theory and Practice Developments.- The Auditing Profession and Structure of the Audit Process.- Standard Audit Process Theory and Concepts.- Standard Audit Procedures and Structure of IFRS Level I Statements.- Detailed Relevant IAS Statements Ist Level Decision Structure.- Inventories and Cost of Sales Section.- IAS 11-Construction Contracts.- Property, Plant and Equipment.- IAS 17-Leases.- IAS 40 Investment Property.- IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations.- IAS 36 Impairment of Assets.- IAS 38 Intangible Assets.- IAS 37 Provisions, Contingent Liabilities and Contingent Assets.- IAS 12-Income Taxes.- IAS 18 Revenue Recognition.- IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.