Audit of financial statements
Each successful enterprise conductsaudit of financial statements. It can be both internal (that is, the organization's own forces) and external (through the services of a third-party company). In both cases, this verification should be carried out within the framework of the current legislation.
Audit of financial statements is a process,formed from certain stages. First of all, the preliminary planning of the inspection is carried out, then the search for evidence is carried out (the use of information received from a third person is allowed). At the final stage, the documented registration of the received data, their grouping, analysis and formation of the auditor's own opinion on the financial condition of the enterprise is carried out.
Planning of audit assumes an establishmentscope of verification, choice of methodological base, drawing up of a general plan and development of the schedule of work of the auditor with a specific client. Collection of information means obtaining audit evidence that either confirms the correctness of the reporting or serves as a basis for identifying errors and shortcomings. If the audit of financial statements can not continue due to a lack of the received documentation, the auditor has the right to apply to third parties for additional information, and the data can be received both in the form of an oral questionnaire and in the form of written requests.
As a result of the audit carried outis the personal opinion of the auditor, expressed in the audit report. The final conclusions of a specialist should be based only on truthful data, therefore, they must be clearly argued. The audit firm is obliged to present to its client the final document expressing the final decision of the specialist. It can be absolutely or conditionally positive, negative, and also in some cases the auditor makes out a refusal, if there are appropriate grounds for that. Of course, audit reporting can not be absolutely reliable, since it is always necessary to take into account the influence of external factors, especially human. In addition, if the auditor has reason to believe that the audit has not been carried out sufficiently qualitatively, he should inform the authorities and increase the scope of the verification procedures.
Verification can be mandatoryor at the initiative of the company itself. Mandatory audit of financial statements is carried out, as a rule, once a year. The initiator of such a procedure is the state bodies, and the terms and procedure for conducting the audit are fixed by legislative norms. Initiative verification is carried out at the request of the enterprise itself, using internal resources or services of a third-party organization specializing in this field. Audit of financial statements involves consideration and examination of the annual balance sheet, financial results report, capital flow, various applications, explanatory notes and other.