How does the audit work in the organization?

Audit of the organization is a set of evaluation activitiesreliability of the information of the financial statements and their compliance with the requirements of the legislation. Verification concludes with the formulation of an opinion on the correctness of accounting at the enterprise. Let's consider more details organization and conduct of audit.

Classification

There are different types audit organization. Classification is carried out on different grounds. Depending on the category, an independent, internal, state financial audit of the organization.

In the first case, the verification is performed by a third party company in accordance with the contract concluded with the management of the enterprise. Behind organization of internal audit the special service operating in the structure of the company is responsible. State inspection is carried out by authorized state structures.

Depending on the profile of the enterprise, the audit can be general, insurance, banking, etc.

Also, inspections are voluntary and mandatory. In the first case, the initiator is the head of the enterprise. He also determines the time and scope of verification.

An obligatory audit is due to the organization, specified in the legislation.

Normative base

The concept of audit organization, responsibilities, responsibilities, rights, requirements for the certification of companies performing verification, are fixed in Federal Law No. 307.

In addition, according to the indicatednormative act adopted the federal standards of auditing. They fix the procedure for carrying out the audit, uniform rules of procedure. The rules are the same for all participants of the audit activity.

The standards explain the principles of verification, the procedure for issuing an opinion. They define the methodology, depth, volume audit organizations.

In addition to domestic, there are alsointernational standards. They set requirements for the quality of the audit, defined goals, lists of necessary documentation and rules for issuing opinions.

Regulations for auditors

Reporting can be auditedspecialized organizations or private specialists. The latter are presented with a number of requirements. The private auditor should consist, first, in the accredited self-regulating organization. In addition, they must have:

• higher legal or economic education;
• work experience in the position of assistant auditor or chief accountant for at least three years;
• Auditor's certificate (issued on the basis of the results of passing a special examination).

Legislation also enforces a number of requirementsto audit firms. The organization should be, firstly, commercial, and secondly, it is formed in any form, with the exception of JSC. In the state of such a company it is necessary to have at least three specialists. At the same time, not less than 51% of its authorized capital should belong to auditors or other similar organizations.

Subject of verification

AT organizations to be audited on the initiative of the head, controlis carried out only on the issues stipulated in the contract. For example, checking may be performed only in respect of cash transactions, account OS, NMA or current assets, or payments to contractors budget. Accordingly, the expert will assess the correctness of the design of only certain categories of documents.

AT organizations subject to compulsory audit, all financial documentation is checked andfinancial statements. In this case, the company must provide all available securities that are related to its economic activities. Since such a audit of the organization is carried out by representatives of state structures, it is impossible to not fulfill their demands.

Verification requirement

For most companies, audit is notcompulsory. As a rule, state structures are involved in checking accounting records of large companies, including those using financial means of the population. Mandatory audit is aimed at reducing the risk from the actions of unscrupulous firms, ensuring the protection of the interests of citizens and the state. It is usually performed once a year.

List of enterprises subject to mandatory inspection

Annual audit of organization accounting is carried out if:

• The enterprise is a joint-stock company. It should be noted that, in accordance with the latest amendments to the legislation, verification is carried out in relation to all business entities, regardless of the type, type of activity, financial indicators. Accordingly, the audit is carried out both in ZAO, and in OAO.
• The company's shares are in circulation on the stock exchange.
• The enterprise publishes or submits its reports to competent state bodies. The exception in this case are state institutions.
• The organization is a credit, insurance, clearing, non-government fund or uses the financial means of the population.
• The volume of profit for the previous year exceeded 400 million rubles. or an asset in the balance sheet at the end of the period more than 60 million rubles.

This list is not closed. The legislation may also fix other cases of compulsory audit. It is worth noting that the audit of these entities is only allowed to be performed by audit firms.

Timing

The duration of the verification period for a voluntary audit activity of the organization is defined in the contract. The deadline depends on:

• The scale of the enterprise.
• Presence of representative offices, branches.
• Duration of activity.
• The amount of verification.
• Quality of record keeping.

If a mandatory inspection is carried out, the period is established by law and regulatory enactments. As practice shows, audit of the organization's reporting in this case, on average takes 1-2 weeks. There are also cases of longer inspections, however, they rarely last more than two months.

Stages

Audit involves four interrelated stages:

• Preliminary acquaintance with the enterprise.
• Planning.
• The main stage (proper verification).
• Formulation of conclusions.

Preliminary activity

At this stage, the auditor examines the constituent documents, assesses the risks on the basis of:

• Specific activities of the enterprise.
• Indicators of financial position, the rate of production growth.
• Flows of frames.
• Qualifications of accountants.

Planning a test

This stage is considered one of the key activities of the auditor. Planning includes 3 stages:

1. Conclusion of the contract with the customer. During this stage, terms, cost of audit, number of specialists are discussed.
2. Planning. It involves defining a verification strategy.
3. Development of an evaluation program. During this stage, activities are formulated, reporting sections are identified, subject to deep and superficial verification.

Process Flow

During the direct examination of the documentation and its evaluation, the auditor must adhere to the requirements and standards. The specialist carries out:

• Collect evidence, that is, primary documents that reflect the facts of transactions, information from outside actors, etc.
• Evaluation of sample results.
• Examination of reporting indicators.
• Estimation of the degree of materiality.
• Definition of audit risk.
• Evaluation of compliance of financial transactions with legal requirements.
• Other actions necessary to formulate sound conclusions.

Execution of the conclusion

Upon completion of the audit, the auditor shall prepare an official motivated document. In it, he sets out his opinion on the compliance of the reporting with legislative requirements.

The conclusion is necessary internally and externallyusers to form their own views on the financial situation of the enterprise. The information in this document helps to make the right management decisions.

The conclusion can be:

• Unmodified. It is also called positive. In this document, the auditor indicates that there are no violations in the company's financial statements.
• Modified. This type of conclusions is divided, in turn, into 2 subspecies: an opinion with a reservation and a negative conclusion. The first is made if the expert has identified some violations, but they do not have a significant impact on the reliability of the reporting documents. Accordingly, a negative conclusion is formed if the violations are significant.

In addition, the auditor may refuse to expresshis opinion on the proven documents. Such a situation is possible if the specialist has not received the necessary evidence during the audit. For example, the assessment was carried out in relation to only one reporting site, the organization refused to provide documentation, etc.

Organization of internal audit

Any manager is interested inproper control over the efficiency of the company's structural divisions and the conscientiousness of their employees performing their duties. The most important element of management is the internal (internal) audit.

The objectives of control are:

• Minimizing risks and maximizing the profit of the organization.
• Increase the effectiveness of decisions related to the use of enterprise resources.

Internal audit is an activity regulated by local documents related to the control of different areas of work of the firm.

To implement this task in the enterprisethe audit service is formed. The number of its employees depends on the scope and nature of the inspections. In small enterprises, internal audit can be carried out by 1-4 employees. In large firms, the staff of the audit department is quite large. At the same time, the duties of individual employees may go beyond the scope of accounting. For example, employees can conduct an appraisal, technological, environmental audit, etc.

Key terms and conditions

The correct organization of audit at the enterprise is impossible without the implementation of a set of measures, including:

• Drafting of internal organization projectsinspections by industry and areas of work. They should clearly indicate the specific functions of responsible persons, the rules for their interaction with other departments and management of the enterprise, the status of internal auditors, their responsibilities, duties, rights.
• Establishment of qualification requirements for employees of the audit service.
• Development and definition of rules for the introduction into the activities of the audit department of standards, guidelines, norms.
• Drawing up of programs on improvement of professional skill and preparation of internal auditors.
• Forecasting the demand for personnel.

Types of internal audit

The most common is the division of audit into operational, financial reporting and compliance with legislative requirements.

In addition, there are checks:

• Organizational and technological.
• Functional.
• Management systems.
• Activities.

Functional auditing is performed to evaluateefficiency and productivity. For example, verification can be carried out in respect of transactions performed by an employee or an office in the context of its function.

Organizational and technological audit involvesEvaluation of the work of various parts of the management system. In the course of such verification, the technological or organizational feasibility of their availability and functioning is established.

Cross-functional audit aims to assessquality of certain functions. For example, the efficiency of production and sales, the effectiveness of interconnection and interaction of units responsible for these areas of work are analyzed.