TO BECOME LISTED ON A GROWTH MARKET SEGMENT OF YOUR LOCAL STOCK EXCHANGE MARKET

I. BENEFITS OF AN INITIAL PUBLIC OFFERING
II. ADMISSION REQUIREMENTS TO GROWTH SEGMENT OF STOCK MARKET
III. OBLIGATIONS OF A LISTED COMPANY
IV. STEPS OF THE INITIAL PUBLIC OFFERING (IPO) PROCESS
V. FREQUENTLY ASKED QUESTIONS (FAQ)

BENEFITS OF AN INITIAL PUBLIC OFFERING
Obtaining Financing
Acquire the essential financial resources to support your enterprise's ambitious projects and/or to possess the capacity to respond to calls for bids, particularly considering recent public private partnership agreements.
Securing the Long Term Success of the Company
Statistics reveal that 88 of family businesses fail to persist past the third generation, meaning they typically dissolve by the time of the founder's grandchildren.
Every entrepreneur who invests years in building their enterprise naturally doesn't wish to see it falter after their departure.
The most assured avenue for ensuring your company's longevity lies in the financial market. This is substantiated by the enduring presence of some of the world's oldest companies, such as Coca Cola their survival can largely be attributed to their listing on the stock exchange.
The necessity for ensuring this longevity is also why the only business structure accepted on the stock exchange is a public limited company, due to its governance body, capable of steering the company effectively regardless of the founder's presence or absence.
Building Credibility and Boosting Reputation
The BRVM is a shared stock exchange among eight 8 countries Therefore, listing on this market can significantly enhance your company's reputation and visibility
The impact of going public doesn't merely revolve around the financing you raise, but you indirectly cover marketing costs as your revenue will inevitably be influenced too!
Increased visibility often correlates with revenue growth Financial markets provide some of the most prominent global exposure for a company, regardless of which market your business is listed on.
A Communication Endeavor
Initiating a public offering is more than just a financial venture, it's fundamentally a significant communication strategy for your company!
When your company is listed, it acquires international exposure and consequently gains the attention of both foreign and domestic investors, the government, as well as potential customers who might not have known about your business before This visibility acts as a badge of credibility for all your stakeholders.

A cost effective funding channel that enables diversification of financing sources
In the US financial market, 80% of companies finance themselves through the stock market, while only 20% rely on banks
In the European financial market, 60% of companies choose the stock market for financing, with 40%
opting for banks In emerging markets, 20% of companies rely on the stock market for funding, while 80% turn to banks.
However, in African financial markets, a mere 5 of companies finance themselves through the stock market, with a striking 95 relying on banks.
Listing on the stock market enables you to raise funds without the need for bank guarantees, in exchange for issuing shares of your company It is a process known as equity issuance.


GENERAL ADMISSION REQUIREMENTS ON AFRICAN STOCK EXCHANGE MARKET GROWTH SEGMENT
To qualify for a stock market listing, the following conditions must be met :
-The company must be incorporated as a public limited company (Société Anonyme) with a minimum capital of 15 000 US Dollars at the time of the listing application.
If your company is not currently structured as such, a legal transformation through a notary will be necessary, along with a pos possib le capital increase.

Our role includes providing advice and assistance to help determine the most optimal options during this phase.
-The company must have a minimum of two years of track records.
-The company must be willing to sell at least 10% of its equity shares.
-The company must provide financial statements for the last two years audited audited.
-The company must provide a business plan
-There is no revenue requirements. At pre pre-revenue stage, the company can raise fund on th thestock exchange market. Just need to demonstrate in the business plan, the business profitability in future years.
-An agreement with a listing sponsor (an entity authorized by the financial market authority to handle the listing process of an SME) is necessary
We will offer guidance and support to ensure compliance with these requirements and facilitate a smooth process for your comp company 's listing on the stock market.
REQUIREMENTS OF A SME LISTED COMPANY
Obligations of Continuous and Periodic Information Disclosure
Simple and more streamlined than you may think!
For SMEs,startup, finetech there are only two (02 )requirements:
-Provide a semi-annual activity report that compares your forecasts with actual performance and explains any variances.
- Provide annual financial statement audited .
All the stock exchangeexchangerequires is transparency.Investors share in the profits and losses of your company based on their capital contribution.
STEPS OF THE INITIALPUBLIC OFFERING (IPO) PROCESS
The process has an average duration of 12 months and consists of the following main stage
-STEP 1: Pre Pre-Assessment of Your Company -Estimated Duration: 1 Month
During this initial phase, we will:
-Request you to sign a confidentiality agreement.
-Gather legal documents, financial statements, and, if available, the business plan from your company.
This step aims to evaluate the potential success of your company in undergoing an initial public offering (IPO). Based on the findings, we will provide you with a diagnostic report to confirm whether your company can be structured for such an operation or not.
Step 2: Structuring Estimated Duration: 2 Months
During this stage involves:
a) Reviewing the accounting records, ensuring tax compliance, and, if necessary, making provisions for any tax risks. Correcting and enhancing the financial statements of your company.
b) Submitting the financial statements to the Statutory Auditor for certification.
c) Developing or updating your business plan.
d) Conducting a valuation of your company.
e) Creating the information memorandum designed for investors.
Step 3: Review of the file by the listing sponsor and submission to the Financial Market Authority Estimated Duration: 3 Months
Step 4: Review of the file by the Financial Market Authority and obtaining validation for your IPO from the authority Estimated Duration: 3 Months
Step 5: Launch of the securities subscription for fundraising, completion of securities registration formalities, and transfer of funds to your company Estimated Duration: 3 Months



ADMISSION REQUIREMENTS ON AFRICAN STOCK EXCHANGE MARKET GROWTH SEGMENT : USEFUL WEB LINK PER COUNTRY

BRVM UEMOA/WAEMU WEST AFRICAN MONETARY UNION STOCK EXCHANGE
BOURSE REGIONALE DES VALEURS MOBILIERES DE L’UEMOA
https://www.brvm.org/fr/comment-etre-cote-la-brvm#:~:text=%C3%8Atre%20cot%C3%A9%20%C3%A0%20la%20BRVM,respect%20des%20obligations%20d'information BVMAC
BOURSE DES VALEURS MOBILIERES D’AFRIQUE CENTRALE
https://www.bvm-ac.org/espace-emetteurs/conditions-d-admission-au-marche-boursier/
JOHANNESBOURG STOCK EXCHANGE MARKET
https://www.jse.co.za/raise-capital/equities-market/altx
NIGERIA STOCK EXCHANGE MARKET
https://ngxgroup.com/exchange/raise-capital/growth-board/
https://ngxgroup.com/exchange/raise-capital/listing-requirements/
RWANDA STOCK EXCHANGE MARKET
https://rse.rw/IMG/pdf/rse_rule_book.pdf
GHANA STOCK EXCHANGE
https://gse.com.gh/listing-rules/
NAIROBI SECURITIES EXCHANGE
https://www.nse.co.ke/growth-enterprise-market-segment/
https://www.nse.co.ke/alternative-investment-market-segment/
MALAWI STOCK EXCHANGE
https://mse.co.mw/listing/edgex
BOTSWANA STOCK EXCHANGE
https://www.bse.co.bw/how-to-list/
NAMIBIAN STOCK EXCHANGE
https://nsx.com.na/index.php/listing-at-nsx/listing-requirements
TANZANI A STOCK EXCHANGE
https://www.dse.co.tz/egm
UGANDA SECURITIES EXCHANGE
https://www.use.or.ug/content/market-regulations
LUSAKA SECURITIES EXCHANGE
https://luse.co.zm/listing-on-luse/
ZIMBABWE STOCK EXCHANGE MARKET
https://www.zse.co.zw/wp-content/uploads/2022/03/ZSE-listing-guide-Mar-2022.pdf
EGYPT STOCK EXCHANGE
https://www.egx.com.eg/en/How_list.aspx

LESOTHO : MASERU SECURITIES EXCHANGE
https://www.msm.org.ls/listing-requirements
MAURITIUS STOCK EXCHANGE MARKET
https://www.stockexchangeofmauritius.com/listing-issuer-services/listing-on-sem/admission-requirements/official-market
MOROCCO STOCK EXCHANGE
https://www.casablanca-bourse.com/fr/pourquoi-et-comment-sintroduire
ALGERIA SECURITIES EXCHANGE
https://www.sgbv.dz/?page=rubrique&lang=fr&mod=78
TUNISIA STOCK EXCHANGE https://www.bvmt.com.tn/fr/content/conditions-dadmission
FREQUENTLY ASKED QUESTION
Is it too early for a company to go public ?
A company enters the stock market to accelerate its growth!
The stock market serves as a prime financing tool for small businesses to raise funds and fuel their expansion What attracts investors to invest in small or medium sized enterprises is undoubtedly the potential for growth and profitability they offer compared to larger corporations.
Is our company not too small for this type of operation?
You can go public at any stage of your company's development!
Financial market regulators would not have provided regulations for this possibility if they did not see economic benefits for SMEs in going public The CEO of BRVM, Félix Edoh Kossi Aménounvé strongly encourages SMEs to explore the option of listing on financial markets, as highlighted in the article published on Jeune Afrique and the BRVM website
https://www.brvm.org/fr/mediacentre/actualites/felix-edoh-kossi-amenounve-les-entreprises-qui-travaillent-en-afrique-doivent
Does this process preclude us from exploring other fundraising channels?
Not at all!
The process of going public is compatible with any other fundraising channels In fact, this is an argument that you can leverage to negotiate better terms with potential investors, whether they are venture capital firms, business angels, private equity firms, or banks.
Have you previously supported companies or startups that have successfully raised funds on the financial market?
We launched this service in October 2022 and currently, we have a portfolio of 10 companies that includes several startups, finetech as well as small and medium sized enterprises.
The listing process for some of these companies is expected to be listed by the last quarter of 2023.
Due to confidentiality requirements of this operation, we are unable to disclose the names of the companies we assist.
Who are the investors in the financial market?

Currently, 80% of investors in the African financial markets are institutional investors, while 20% are individuals.
As part of our promotion strategy, we place a strong emphasis on targeting the African diaspora This demographic possesses a significant amount of liquidity and has a deep understanding of the stock market Unfortunately, this group has been overlooked thus far However, we firmly believe that the African diaspora is ready to make substantial investments on the continent.
We strongly advocate for making your securities available to this type of investor and aim to capture their attention and participation in your offering.
Will investors exert influence over the management of the company?
- If investors hold 10 of the company's shares, they do not have decision making power in your management Their primary interest is to be kept informed of the company's progress, receive profits, and, in case of losses, bear their share of the responsibility.

However, they do have the right to request a management assessment from the judicial authorities (prosecutor) if they have reasonable grounds to believe that you are engaging in abnormal management practices that go against the company's interests.

- If investors hold at least 20% of the company's shares, they wield a significant influence over the management decisions of your company However, as decisions are made based on majority vote, as long as you retain the majority of shares in your company, with a minimum of 50.01% you will always have ultimate control.

What is the overall cost associated with this operation?
Globally on average at 10% of the amount raised on the financial market, with an average of 80% payable as success fees During the process preparation of the business plan, we recommend including all the structuring costs in your financing needs.
This approach ensures that these costs do not burden your projections and can be supported by the investors in the financial market.
What is the overall cost associated with this operation?

Consulting fees charged by Corporate Finance Consulting (CFiC) Senegal :
 5% including all taxes of the amount raised through the stock exchange, with an initial payment of 4,500 US Dollars included taxes
 The remaining balance is payable once the funds raised, considered as success fees.
What is the overall cost associated with this operation?

Fees of the financial auditor Please note that these fees are provided for informational purposes only We recommend confirmation with a certified public accountant registered with the professional accounting body in your country for accurate pricing).

Estimated fees range from 4 500 US Dollars for two years audited financial statements. What is the overall cost associated with this operation?
-Listing sponsor fees (a firm authorized by the financial market authority to handle the listing process of an SME) 4% including all taxes of the amount raised, with an initial payment on average between 10% to 20% of the fees.
- Notary fees (applicable only in case of legal transformation It is advisable to consult with your own notary). -The fees charged by the Stock Exchange Market An average of 1.5% including all taxes of the amount raised, payable on success fees, once the funds are raised on the stock exchange market.

I - Our mission

This assignment To For object to ensure there outfit of accounting, elaboration of your up-to-date tax and social declarations, and the establishment of the annual accounts of your business.

Our mission has the following components:

- Outfit an accountant
- Tracking monthly and on-time payments from service providers
- Preparation of financial statements annual
- Issuance of the certificate of Visa
- Preparation of social declarations and tax
- Payroll management (preparation of employment contracts and monthly bulletins of the pay)

However, we draw your attention to the fact that in accordance with the Uniform Act relating to the accounting law of OHADA companies, that "The summary statements must give a faithful image of the assets and liabilities as well as the financial situation and results of the company”.

You therefore remain responsible to third parties for the completeness, reliability and accuracy of the accounting and financial information contributing to the presentation of the accounts.

We are counting on the full cooperation of your collaborators so that it is made available to us. all of the documents And others information required Who We will enable us to carry out our assignment.

II - Tasks carried out by the accountant

2.1 3.1 Works accountants

 The input An accountant
The monthly entry on the computer system of all the accounting documents:
- Sales Journal (from sales invoices issued by your Billing department)
- Purchasing journal (from invoices received from suppliers) ;
- Log Crates
- Log Banks
- Operations Log Various.

 The establishment of reconciliations banking
 The establishment of tax (financial statements) and accounting packages
 The analysis of the accounts of balance sheet
 Record keeping legal

2.2 3.2 Works tax

 Preparation of all tax returns for the year :

- The monthly statement of VAT,
- The monthly income tax return Income,
- L- THE calculation of tax on THE companies And THE payment quarterly of the Instalments,
- Monthly declaration of rights of stamp,
- Declaration and payment of tax professional,
- The declaration of the tax on the proceeds of shares (if applicable).

  Advice and permanent assistance in matters tax
THE office brought of manner permed THE advice And assistance required To the company for any questions of a tax nature within the framework of the recurring transactions listed above.
  Consultations and special tax assistance :
Tax consultations requiring research and consulting work will be subject to additional invoicing after prior acceptance. These include, for example, the following actions:
- - Assistance during a tax audit possible,
- - Setting up a reimbursement file for VAT.
- …

2.3 3.3 Works social
 keeping payroll journals and ledgers pay
 the declaration to the CNSS of new recruits
 the following social statements :
- CNSS
- CIMR
- MUTUAL
- ACCIDENT OF WORK
However, with regard to the additional missions below, an additional package to the fees monthly will be able be discussed And negotiated with YOU, account outfit of there business relationship existing.


III- Obligation of the client and work under his responsibility

The customer agrees to:
- Regular communication of documents accountants
- Keeping check books or counterfoils specifying all the information necessary for registration an accountant.
- The preparation of administrative regulations (Taxes, CNSS, Perception, etc.) within the agreed deadlines in order to avoid any late filing of declarations and payments.
- - The daily maintenance of the cash register and the control of its pay.
- There statement In THE best time limit of All change In there situation personal details of company employees (birth, holidays, ...)
- The systematic declaration of new employees joining the company by providing the documents necessary for their declaration social.
- The justification of income and expenditure according to the forms required by the Tax Administration and the justification by accounting documents of all operations accountants.
- The retention of all commercial documents and supporting documents for accounting entries for 10 years as well as fixed asset invoices beyond this period when their accounting life so requires. justifies.
- Provide the elements necessary for the establishment of the report of the Manager.
- Agree on the date for the organization of the shareholders' meeting in order to send out the invitations to the shareholders' meeting as soon as possible.
- Provide all the information for updating the company's legal registers.

IV- disclaimer confidentiality

The information communicated by the company to the Chartered Accountant is strictly covered by professional secrecy given the ethical principles of the profession. The same applies to all data of which the Chartered Accountant or his team becomes aware during the performance of this assignment. The Chartered Accountant undertakes to ensure that his team respects this obligation.


V- Fees

Our fees, invoiced as the work progresses, are calculated on the basis of the time spent by each employee, plus any costs and miscellaneous disbursements. Exceptionally and in order to establish a lasting commercial relationship, we offer you fixed fees according to a scale available on the following section of our website.

This scale of fees takes into account the legal scale applied by ONECCA Senegal, the volume of transactions to be processed, your turnover, and a commercial discount of 20% .

The payment of our fees is payable in advance at the signing of the contract and for the periods following the first month of collaboration, at the latest on the 05th of the month following the after deposit of the corresponding invoices. Our mission will take effect from your acceptance with an effective date and an expiry date which will be defined contractually with you.

These fees will be subject to review after discussion with you to be updated in relation to the fee schedule defined by the Firm.

VI- Terms General

The mission can be terminated by simple registered letter, subject to paying the fees due for the work already carried out, sent within 1 month. During this month of notice, all planned interventions must be carried out and paid for according to the contractual conditions.

The mission can be terminated by simple registered letter, subject to paying the fees due for the work already carried out, sent within 1 month. During this month of notice, all planned interventions must be carried out and paid for according to the contractual conditions.

Our assignment will take effect from your acceptance of the engagement letter after discussion with one of our chartered accountants. It will relate to the accounts for the financial year ending in the period agreed upon by mutual agreement.

1. TECHNICAL APPROACH AND AUDIT AND AUDIT METHODOLOGY AT CFIC

Our audit experience in similar structures allows us to offer a balanced general approach, based on the desire to reconcile efficiency, relevance and cost. Our desire is to adapt this approach to the specific cases of the audited company that is the subject of this audit.
Our approach is naturally pragmatic. It takes into account the achievements of the existing control systems and the procedures in force to ensure the execution of the activities of the audited company. It allows us to anticipate and resolve difficulties as soon as they become apparent. Emphasis should therefore be placed on the identification of risks and on interim analyzes in a process of progressive reduction of uncertainties.

The characteristics of the Corporate Finance Consulting (CFiC) Senegal audit approach are part of a cycle of continuous improvement, reducing audit risk and increasing the efficiency and added value of the mission.

The general approach that we propose is based on two values:
 the requirement of a permanent updating of the understanding of the activity of the audited entity and of a thoughtful design of the mission centered on the risks and determining the audit approach;

 listening to the client, at each stage of the mission and from the design phase, thus making it possible to anticipate and resolve difficulties as soon as they are perceptible and to help the entity progress.

Our audit approach revolves around the following three (3) main axes:
 Risk control which supposes:
– understanding of the activity and particularities of the environment of the audited company,
– the analysis of key procedures, in particular the identification of process events, the identification and evaluation of the controls put in place,
– the identification, examination and assessment of risks.

 The intelligence and the construction of the approach which, if they grant a great freedom and a lot of flexibility, also require rigor and formalism. The preparation methodology is standard, but it must be adapted to the risks highlighted, to the specificities of the audited company, and to the context of the intervention.
 The permanent search for the link and the coherence between the risk analysis, the nature and the extent of the work.

► An integrated and structuring approach
Our proposal is guided by the following principles:

 a strategy based on working in close collaboration with all the actors of the audited company, which will require meeting the main operational managers of the audited company who will be indicated to us as interlocutors;
 a capacity for support in the subsequent stages of reflection;
 quality assurance, put in place by our firm to guarantee the quality of the intervention at all stages of the mission;
 permanent communication with the Management of the audited company,
 a concern for responsiveness and availability, conditions necessary for meeting deadlines.

Our approach is intended to be educational and informative in the sense of a partnership of trust for the managers and staff of the audited company.

The audit approach that we implement aims to be specific to each of our clients; it is based on our understanding of the structure of the audited company and is based on the following principles:

These principles contribute to establishing a climate of confidence allowing us to achieve a double goal: to support our opinion in a complete way while helping our clients to benefit from the external audit by restoring to them our vision of the accounting issues.

Our approach will be integrated, so as to cover the main expectations of the terms of reference. It will be interactive, participatory and based on a concept: risk management and anticipation.

Our operational audit approach will include the following steps:
 a general knowledge of the audited company and its environment. This preliminary phase helps to better guide subsequent work;

 an assessment of internal control procedures. This step is fundamental in particular to ensure the completeness and reliability of the accounting records;

 control of invoicing, collection of debts and movements of bank accounts;

 the control of customer accounts, sales, bank accounts and any account related to invoicing and collection on the one hand, the validation of the balances of said accounts which leads to the expression of our opinion on invoicing, collection of receivables and the movements of bank accounts on the other hand, the desired understanding of the operation.

The audit mission must be an opportunity for mutual enrichment between the audited company's accounting departments and the external auditors with a view to improving the quality of internal control and ensuring optimal control of its risks.

► Detailed approach

Our experience leads us to offer you an audit approach based mainly on the organization of a schedule which involves an intervention in four (4) phases:

 phase 1: Familiarization with and adaptation of the audit strategy;

 phase 2: Review of internal control procedures (diagnostic analysis of the accounting and financial system and internal control);

 phase 3: Validity procedures;

 phase 4: Synthesis and conclusions.

 Phase 1: General awareness and framing of the mission: adaptation of the audit strategy

During this phase, we must acquire a general knowledge of the entity, its particularities and its economic and social environment, in order to better understand the circumstances or events that may have a significant impact on the company's activity. company audited and on the accounts, and to take these elements into consideration to more easily understand the related risk areas.

This familiarization will focus on the following main points:


This scoping phase will essentially be carried out through interviews with the main managers and examination of the existing documentation.

We will also take note of:
 the general environment: the activity, the highlights of the period, the strategic orientations of the management and the overall control mechanisms put in place;

 the legal and regulatory environment of the audited company;

 data on the organization, in particular the organization chart, the definitions of functions and missions, the administrative procedures implemented and the design of control mechanisms and their operating methods. The interest given to the organizational structure is justified by the fact that it is a factor of efficiency or inefficiency of the organization of the audited company;

This step will be completed by an in-depth analytical review of the figures contained in the accounts of the audited company in order to obtain their proper understanding. The resulting identification of the risk areas will make it possible to establish the review strategy with the entire team.

A memorandum of approach targeted on risks and priorities will be established.

We will discuss with the management of the audited company on the objectives of the mission in order to:
 confirm our understanding of the mission,
 collect the expectations of the management of the audited company,
 specify the orientation of the mission and the specific problems to be examined as defined in the Terms of Reference of the mission,
 Refine the mission schedule.

 Phase 2: Review of internal control procedures

The review of internal control procedures makes it possible to ensure the proper protection of the assets of the audited company, the reliability of the quantified information and the good administrative, accounting, financial and internal control organization.

The objectives of this phase of the mission are mainly to analyze, test and assess the effectiveness of internal control with a view to validating the principles, flows and ensuring their reliability.

This phase should lead to the drafting of a specific report on the internal control procedures specifying the identified weaknesses, findings and recommendations.

Our work will focus on reviewing the accounting framework and evaluating internal control procedures.

 Review of the accounting framework

The study of the accounting framework is particularly essential to ensure effective control of the preparation of the annual accounts of the audited company. We will examine more particularly the following different aspects:

– existence of documentation, making it possible to establish and make known the principles of accounting and control of operations and their flows;

– existence of information circuits aimed at the exhaustiveness of the capture of economic events for the processes of invoicing, cash flow, commitments and post-closing events, etc., the rapid and regular centralization of data towards accounting, the homogenization of accounting data ;

– definition of control activities to be put in place to prevent, detect or correct areas of risk, irregularities and inaccuracies as well as procedures related to the prevention of fraud and errors;

– traceability of information (review path or audit trail) and sufficient documentation to ensure that accounting events occurring within the audited company are correctly identified and documented;

– accuracy and completeness of accounting records;

– traceability of closing accounting entries within information systems;

– existence of accounts analysis systems (control methodology, identification of those responsible for analysis and supervision, nature of analyzes and documentation).

 Review of internal control

The internal control analysis will be structured according to the traditional businesses of the audited company and their respective weight in the accounts.

This analysis phase will make it possible to materialize the strengths and weaknesses of the existing system and the organizational actions to be taken in order to improve it.

The approach to be followed in the various processes/cycles under review should include the following steps:

 Identification of procedures: interview with the hierarchy, collection of formalized invoicing and cash flow procedures, interview with operational staff in order to obtain a description of non-formalized procedures if necessary, verification of the description of procedures by the implementation existence tests of procedures;

 Assessment of the quality of procedures: assessment of the quality of invoicing and cash flow procedures, compliance with audit objectives, assessment of the quality of controls specific to each function, distinguishing between preventive controls and detection controls, identification strengths and weaknesses, analysis of measures to ensure the rapid recycling of detected anomalies;

 Verification of the correct application of procedures: implementation of strengths permanence tests in order to ensure that the system makes it possible to prevent or detect and correct significant errors, verification of the materialization of controls, verification strict compliance with the guidelines defined by the management and the management rules.

Our approach is intended to be sustainable and falls within the general framework of a continuous improvement approach in terms of internal control:

The following procedures will be reviewed:

 Receipts and Collections

– In-depth review of invoicing and collection procedures, including invoicing, accounting and collection;

– Verification of the existence of an invoicing control system, an effective tool for controlling invoicing and analysis of its effectiveness;

– Examination of the separation of functions (handover and authorization of invoicing, reception, accounting registration and customer payments);

– Control of compliance with the defined management rules (signing powers, etc.);

– Monitoring and reconciliation between system statements, billing statements, invoices (quantity, price, payment terms) and customer payments;

– Assessment of collection procedures, in particular the controls put in place, invoice control and control of compliance with the system to avoid double recording;

– Control of compliance with the control procedure for customer advances, customer reservations and the various processing and accounting implications carried out.

 Cash

– Analysis of the procedure for issuing regulations;
– Analysis of the separation of functions: authorization of expenditure, issuance of payment and accounting are carried out by separate persons;
– Analysis of the procedure for establishing bank reconciliations;
– Analysis of the cash management procedure (expenses and supply).

 Phase 3: Account Control

This phase consists of verifying the values entered in the financial statements on the basis of the degree of confidence that we will grant to the controls carried out at the end of the previous step.

We will carry out the following work which takes into account the specific accounting particularities of the audited company:

– Control of the accounts by means of supporting documents;
– Consistency and plausibility checks;
– Benchmarking of financial and accounting data.

 Assets and Liabilities
- the process for managing fixed assets with specific emphasis on the procedures for acquisition, inventory management, and depreciation of fixed assets.

- The processes for granting advances and loans to staff, the detailed situation of these receivables at the period indicated as well as the recovery (reimbursement) procedures provided for and their effectiveness and efficiency.

A detailed analysis also of other receivables and the effectiveness of the recovery procedures in place for other receivables.

- A precise analysis of the cash management process, the cash position, bank reconciliation statements as well as bank suspense at risk for the audited entity.

- A detailed analysis of the liabilities of the audited entity, particularly with regard to tax declarations (possible applicable taxes), social (IPRES, Social Security, IPM, retirement allowance), supplier payments, other debts of the funds of the projects and the analysis of the anteriority of all the debts of the audited company.

- The internal control mechanisms or systems in place as well as their reliability.

 About the budget

- Perform a review of the budget process from the elaboration, the approval of the budget by the Board of Directors, the execution and the monitoring of the budget in accordance with the approvals and the eligible and ineligible expenses.

- The internal control mechanisms or systems in place as well as their reliability.

 Regarding recipes

- A precise analysis of the control mechanisms of all the receipts of the audited company and their reliability.

- A calculation and analysis of the profitability and the consistency of the figures between the receipts from one year to another on the one hand and, on the other hand, the evaluation of the receipts in relation to the corresponding outputs at the end of the the audited period.

- The review of the accounting treatment of receipts of the audited company.

 Regarding expenses

Review of the management manual as well as all disbursement processes of the audited company.

- Analysis of the strengths and weaknesses of the management manual as well as the disbursement procedures of the audited company.

- The risks identified to report to the Board as well as the appropriate recommendations.

- The review of the accounting treatment of the disbursement documents of the audited company.

 Concerning the management of projects and their interference with the operation of the audited company

- Concerning the projects whose management has been entrusted to the audited company, is there any interference in the management of funds for these projects with the functioning of the accounts of the audited company? If so, provide supporting evidence in the appendices.

 Regarding personnel management
- Perform a personnel situation by entity and by position

- Perform a review of the personnel management process (recruitment, payroll, advances and loans to personnel, other personnel expenses) and ensure that appropriate controls are in place

- Identify possible risks and propose recommendations

- Respond to the following specific concerns of the audited company:
o Does each agent have a job description?
o Do we use temporary workers?
o What is the percentage of temporary work compared to personnel costs as a whole for the audited period?
o What is the share of administrative staff in personnel costs for the audited period?

 Phase 4: Synthesis and presentation of conclusions

 Final Summary

At the end of the intervention in the field, we will organize a summary meeting with the managers of the audited company; the objective of this meeting will be to:

 discuss the conclusions of the auditors;
 ensure that the work has been carried out in accordance with the objectives assigned to the mission.

Reports

We understand that our financial audit report will need to be filed in three (3) hard copies, and will include:

- the financial statements for the year or years audited
- the statements by components stipulated in the specific terms of reference of the client's mission
- the response notes to the questions formulated in all aspects of the Terms of Reference of the mission, accompanied by evidence as well as tables in the annexes.

We also understand that we must identify, for year-end operations, expenses and income prior to the audited year and will have to make the necessary adjustments.

Our financial audit report must express an opinion on each of the 3 main headings set out above in the scope of the mission as well as recommendations.

In addition to this financial audit report, we will provide an internal control report which will highlight the results of the in-depth diagnosis of the weaknesses of the internal control system of the audited company as well as our recommendations.

Beyond the verification mission, auditors are expected to make concrete recommendations to improve the functioning of the audited company as well as its operational and management performance. The success of the mission will depend above all on our ability to bring strong added value to the Board of Directors of the audited company.

2. WORK PLAN

This budget is based on an excellent accounting organization of the audited company. This assumes that all the analyzes necessary to validate the financial statements are available on time.

The mission will be planned in such a way as to respect your time constraints. The work can be carried out according to the estimated schedule and according to the constraints validated with the client.

Steps for creating a business plan

A business plan is written gradually, and is continually updated. To approach the business plan in an organized way, you must go step by step. We assist you in the development of the business plan with a team of two consultants including a senior and a chartered accountant by implementing the approach below: • The presentation of the project and the team
• Market and competition research
• The positioning and the offer of products / services
• The objectives, the action plan and the necessary means
• Financing, premises and business creation choices
• The financial study of the business plan: the forecast
• Last step: validation of the business plan

Presentation of the project and the team

The first step of the business plan is to present the project globally, as well as the business creators and partners who participate in it.
The presentation of the project consists in explaining succinctly what it consists of. Here, it is not a question of going into details, a few lines are enough. This first part allows all the recipients of your business plan to understand what your project consists of. In particular, you should mention:

• the nature of your project and the offer you intend to offer,
• the sector of activity and the potential of your project,
• the needs related to your project.
Then, you have to present the team you are building as part of your project. This very important element on several levels. Having a good idea is not enough, you also need to bring together the right people to implement it. Business creators must have, together, all the skills required by the project, and share the same vision. If you plan to meet investors, this is a very important criterion for them.

Market research, competition and customers

At this stage, you will have to seek precise information on your market and on your competitors. Care must be taken not to select a sector that is too broad: your business plan must only address the target market (specific activity, geographical sector, type of customers, etc.). Don't forget to mention trends and forecasts, as well as, if applicable, the regulatory framework of your sector of activity.
We discuss this important subject in this dossier: market research. Then, you must explain which customer segment you are targeting: detailed customer profiles, their needs and motivations, their purchasing criteria, their consumption habits, their location, their budget... Your target customers must be precise. Otherwise, you need to segment it into multiple categories.
Finally, analyzing your competitors is an important part of developing your business plan. It allows you to highlight the opportunities that come your way. The weaknesses detected in your main competitors will allow you to justify the competitive advantages on which you wish to rely. It is important to focus on your main competitors.

Positioning and product/service offering

The positioning work is directly linked to the previous step. In the presence of competitors, you must look for a different positioning. This reflex is very important for your company to create value. Otherwise, you will add an additional offer on the market and similar to what already exists. Strong competition destroys value: prices will be driven down and more resources will have to be deployed to sell your products or services.
To be successful, your product or service offering must:
• meet the needs of the customer segments you are targeting and their selection criteria,
• and differentiate themselves from competing offers, by exploiting one or more of their weaknesses.
The explanation of your positioning and the detailed description of your product or service offer (characteristics, price, sales process, customer service, etc.) are very important elements of your business plan.

The objectives, the action plan and the necessary means
In your business plan, you must determine the specific objectives that you aim to achieve. These objectives can be quantitative or qualitative, and they must relate to a period that you determine. For example:
• achieve 100,000 euros in turnover per month from the second year of activity,
• have the service with the best satisfaction rate on the market,
• get 10 new customers per month,
• intervene within a radius of 100 kilometers after 6 months
• …

A goal should be measurable, time-bound, and achievable (which doesn't mean it shouldn't be ambitious). Then, you must design an action plan to explain how you intend to go about achieving the objectives set, and determine what means to mobilize to carry out each planned action.
In terms of needs, we advise you to collect as much information as possible from your future suppliers. This allows you to obtain an accurate estimate of the budget to be provided and the terms that will be applied. Regarding investments, quotes are required. If you need financing, these documents will be requested by the banking institution.

Financing, premises and business creation choices
Your business plan should present several important elements of your future business:
• your business premises: choice, characteristics, catchment area…
• the financing of the project,
• the legal status of your future business and its organization,
• the choices made at the tax level.
This is to discuss the configuration of your future business, the financing of the project and the installation of the activity.
Regarding financing, you must explain what resources you will mobilize to finance your expenses and investments. In the absence of sufficient financial resources, your project cannot see the light of day. Its financial feasibility is not validated. Then, it is very important to explain where the exercise of your activity will take place. If you have already targeted a room, you must present it in your business plan: location, catchment area, characteristics and equipment present, work to be planned, capacity, etc. The room chosen must be compatible with your project and the objectives that you have set yourselves.

Finally, the choices of business creation are a subject on which you should not hesitate to be accompanied by a professional. In addition, the options you choose will have an impact on your financial forecast.
The financial study of the business plan: the forecast
Finally, the business plan includes a section devoted to the financial study of your project. The objective is to offer an accounting analysis through different tables: an income statement, a balance sheet, a cash flow table and a financing plan. This study is usually developed over a period of three years.

Provisional income statement
This table lists all the products (turnover, other income) and expenses (purchases, salaries, overheads, taxes, social security contributions, etc.) provided for in the context of your project. In particular, it highlights your profitability, with the calculation of the net result.
The income statement will be used to check if your project is profitable.

The cash table

The cash budget analyzes the evolution of your cash flow month by month, over the entire duration of your forecasts. It contains all the receipts and disbursements relating to your project.
The cash flow chart allows you to verify that your business is able to pay all planned expenses.
The financing plan
This table lists all the financing needs and the financial resources provided to finance the needs. It is important that your financing plan is balanced, that is to say that the resources are sufficient to cover all the needs of the project.
The financing plan allows you to check the financial feasibility of your project.

Provisional balance sheet

Although important, the balance sheet is not the most consulted element in a forecast. The most important elements have already been highlighted in the previous tables. The balance sheet is the state of your company's assets at a specific moment (the closing date of each financial year).

The construction of the financial forecast

To carry out the financial forecast, it is almost essential to rely on software or an application. Without it, you will have to build the tables yourself and do a lot of calculations. The risk of error will be • to mobilize financial resources to finance your needs (contributions, loans, grants, etc.),
• and to integrate all this information into the application or software used.
Then, your financial tables will be completed automatically. You can check:
• that your project generates profits, by checking that the net result of your income statement is positive,
• that your financing is balanced, by checking, in your financing plan, that your financial resources allow you to finance all your needs,
• that your cash flow is positive, by checking that the balance is systematically positive in your cash table.

Last step: validation of the business plan
The validation of a business plan is done in stages, and with different interlocutors.

Validate the preparation of the project

One of the most important points is to validate your positioning and your offer with your future customers. This should be your number one priority. Surveys and direct exchanges are very important, as well as tests. For your business to work, your offer must correspond to customer expectations. If there is one essential element to validate, it is this one.
Then, you can exchange with entrepreneurs, business creation advisors and relatives. Do not hesitate to solicit as many opinions as possible in relation to your project. This allows you to get analysis from outsiders who have nothing to do with your project. Feedback can be interesting on topics related to the choice of your premises, your market in general and your competitors, or even the constitution of your project team.
Financing, legal arrangements and tax choices can be validated by your accountant or your business creation advisor. These are technical elements on which the expertise of a professional is welcome.

Validate the financial study of the business plan

The best contact to validate the financial forecast integrated into your business plan is your accountant. This professional is particularly competent in accounting, financial and tax analysis. He will therefore be able to check a number of important financial elements:
• the financial balance of your project and its financing plan,
• the evaluation of all the quantified elements incorporated in the forecast,
• estimation of taxes, duties and social security contributions,
• the consistency of the financial tables (income statement, balance sheet, cash flow statement, etc.).
When the forecast contains errors, the accountant can rework it to offer you corrected tables. You will then just have to incorporate them into your business plan in place of the previous ones.

CFiC'S ACCOMPANYING PROCESS FOR THE CREATION OF YOUR COMPANY

Many foreign and local entrepreneurs approach us to support them in the formalities of creating their company in Senegal.
The legal form of commercial company recommended today to all our clients par excellence. It is the Simplified Joint Stock Company (SAS) or (SASU) Unipersonnel.
Because of its flexibility in the rules of management of the company.
Among the major advantages of SAS are:
- flexibility is most often put forward. The simplified joint-stock company is renowned for its flexibility and its non-binding nature, in particular with the SAS with variable capital. This advantage is manifested from several points of view and in particular, by a great freedom in the drafting of the statutes. The shareholders freely determine the methods of organization and operation of their company in the articles of association.
- The SAS does not impose a minimum share capital. This can be created from €1 with the possibility of making contributions in industry.
- The SAS has no limit in the number of partners who can constitute it. Its variation, the SASU (Société par Actions Simplifiés Unipersonnelle) even allows you to set up this type of company alone! If in a SAS with fixed capital, the entry of new shareholders requires a statutory amendment, this is not the case in the SAS with variable capital. In the latter, the arrival of new shareholders does not involve any particular formality!
To create your Company in Senegal, you must provide us with the following documents that we will assist you in completing. We will send you the templates to fill out:
- a copy of the identity document of the partner(s) if it is an SAS, SASU, SARL or SUARL or shareholder(s) if it is an SA
- the legal documents of the company (if it is a legal person who wants to create the company)
- the power of attorney to give us to set up the company (if the managers want to delegate the formalities and the signing of the legal documents of the company to us) often this happens when the client is abroad
- the sworn statement of the main manager of the company
- the civil status form to be completed by all partners or shareholders
- the information sheet on the company to be completed by the partner or the majority shareholder who requested the creation.

Once you have returned all these documents to us, we send them by email to the notary, systematically copying you with our exchanges so that you are informed of the progress of the procedure.
The notary will produce the draft statutes and send them to us for validation.
At this time, our firm will send you a copy for a final check, but we will also check at our level all the draft articles of association and their compliance with the various forms sent.
Once you and our firm have validated the draft statutes, we will send the latest versions to the notary for finalization and registration formalities.

The notary will edit the documents (draft statutes) and ask us to come to his office to sign the documents. If we have a power of attorney from you, we will sign the documents on your behalf. Otherwise, we will inform you so that you can go to our notary to sign the draft documents.

Before going to the notary's office, we will pay the capital of the company and the notary's fees to the bank account of the notary's office and collect proof of payment which will be communicated to the notary before signing the final legal documents.

Our support fees for Cabinet CFiC in this procedure amount to 354,000 CFA francs, all taxes included, i.e. 540 euros.

Notary fees to be confirmed with the notary are based on the amount of capital of your company

- They amount to 165,000 FCFA or 251 euros for a minimum capital of 100,000 FCFA or 150 euros

- or 270,000 FCFA or 412 euros for a minimum capital of 1,000,000 FCFA or 1,500 euros

Once the documents are signed, and the fees and capital paid. The notary registers the deeds and will send us the legal documents of the company within 14 days at the latest.

We take care of following up on the progress of the formalities with the notary and of chasing him at least twice a week to obtain the legal documents of the company. We will keep you informed as progress is made.

It will be necessary to estimate for the whole procedure an overall duration of 21 Days.