each successful operating company conducts an audit of financial statements.It can be internal (that is, its own organization) and external (using the services of outside firms).In both cases, the check should be carried out within the law.
audit of financial statements - a process consisting of certain stages.First of all, a preliminary test plan, and then searches for evidence (which is allowed to use information obtained from a third party).In the final stage held documenting the data, their grouping, analyzing and forming an opinion of the auditor on the financial condition of the company.
Audit planning involves establishing the scope of testing, selection of methodological framework, drawing up a general plan and development schedule of the auditor's work with a particular client.Gathering information means to obtain audit evidence that either confirms the accuracy of the statements, or serve as the basis for identifying errors and defects.If the audited financial statements can not continue due to lack of documentation received, the auditor has the right to appeal to third parties in the search for additional information, and is permitted to obtain data in the form of oral questioning, and in the form of written requests.
As a result of the audit the auditor acts as a personal opinion expressed in the report of the audit.Conclusions expert should only be based on truthful information, therefore, they must be clearly argued.The audit firm shall submit to his client the final document, which expresses the final decision of a specialist.It may be totally or conditionally positive, negative, and in some cases, the auditor draws rejection if it has appropriate base.Of course, the audit of financial statements may not be completely reliable, because you should always take into account the impact of external factors, especially human.In addition, if the auditor has reason to believe that the inspection carried out well enough, he should inform the authorities and increase the volume of screening procedures.
check can be mandatory or on the initiative of the company itself.Statutory audit of financial statements is carried out, usually once a year.The initiator of this procedure are the state bodies, and the terms and procedure of checking fixed by the legislative norms.The initiative check is carried out at the request of the enterprise using internal resources or services to other organizations specializing in this field.An audit of financial statements involves the consideration and study of the annual balance sheet, income statement, changes in equity, various applications, and other explanatory notes.
