AUDIT OF FINANCIAL STATEMENTS

0
audit of financial statements
audit of financial statements

An audit of financial statements is a verification of all accounting documents and financial statements by an audit company or an individual independent auditor. The purpose of this audit is the reliability and transparency of accounting. Based on the results of the audit, the auditor issues an opinion.

Objectives of an audit of financial statements

The purpose of the mandatory accounting audit is determined by the following business regulation mechanisms: International Auditing Standard 200 dated January 1, 2017, and Federal Auditing Standard 1/2010 dated February 20, 2010. Failure to conduct a mandatory audit provides for administrative liability with the application of penalties.

If you need bookkeeping services, visit our site. Melbourne Bookkeeping Services.

The objectives of an initiative check can be the following:

  • checking the reliability of documentation and reporting when replacing an accountant;
  • the attraction of depositors or investors;
  • checking for lending in banks;
  • participation in the tender;
  • audit to reduce tax risks.

A timely accounting audit allows you to eliminate serious errors and violations before submitting documents to regulatory authorities.

Stages of an accounting audit

  • preparation for the audit – drawing up a plan with the definition of time for each section of the account, sending requests;
  • conducting an audit or collecting and studying documents – checking primary documents, the correctness of the reflection of all operations, the accounting policy of the enterprise, and other important aspects;
  • drawing up and providing an audit opinion by the auditor – based on the audited areas and the collection of evidence, a conclusion is formed and issued on the reliability of the company’s financial statements.

What documents do auditors check?

Regardless of the type of audit, auditors check a large list of documents by applicable law. This list includes:

  • financial reporting and tax returns;
  • primary documentation and acts of offsets;
  • inventory records;
  • contracts and agreements;
  • statutory documents, licenses, and permits.

A regular audit is not a continuous audit. Auditors selectively check only the documentation that is related to the accounting section being checked on the assignment, and for a separate section, they already form their opinion on the accounting of the enterprise as a whole.

If a business needs a complete audit, you need to know that this is a long and laborious process. But it helps to create ideal accounting for the company.

As a result of a routine audit, you can find out whether the company’s accounting complies with the requirements of the laws. Experienced and professional auditors can assess the state of all accounting even with a selective audit, so it is important to attach particular importance to the selection of an audit firm.

“Capital tax consultation” provides audit services. Our experienced qualified specialists will conduct an audit of the reliability of your accounting documentation. Help identify all errors in the accounting and tax reporting of your company and eliminate these violations.

We offer high-quality services at a fair price. Many years of experience in the market of accounting services have allowed us to establish ourselves as a reliable assistants for enterprises in any field of activity.

Read More: What are the common small business accounting problems?

LEAVE A REPLY

Please enter your comment!
Please enter your name here