A few words about the audit

The phrase "accounting audit" had to be heard by many entrepreneurs and directors of enterprises. However, not all of them understand that this is so and for what it is carried out. Meanwhile, the popularity of auditing as a financial service is growing, and therefore any businessman needs to know about his types and procedure.

Most economic agents regularly face audits of their accounting and tax reporting. As a rule, they end with the issuance of orders or decent fines. This is because even very qualified accountants manage to make mistakes, and sometimes they deliberately distort accounting information.

To avoid penalties, an audit is conducted. Its goal - to identify before the arrival of workers controlling all the flaws and errors in reporting and timely remove them. Such an audit is called voluntary and is conducted solely at the request of the company's management.

There is also an obligatory audit. It represents, in fact, a similar procedure, with the only difference that it is mandatory for the company. The list of criteria, in the presence of which a mandatory audit is conducted, is established by the relevant Federal Law. In particular, this kind of audit is required to be carried out by banks, JSCs, joint-stock companies, whose shares are placed on stock exchanges and a number of other organizations. Companies with an annual revenue of more than 400 million rubles are also subject to compulsory audit.

In Western countries, a voluntary audit can also be conducted to confirm the good reputation of the organization. In this case, the purpose of such an audit is to show its potential customers the stability and transparency of its business, thereby inviting cooperation.

Auditing is an entrepreneurial activity. Its auditors are specialists in the field of accounting and finance, who have extensive experience in this field. The auditor is allowed to perform his duties only after receiving a qualification certificate issued by a special commission formed by an association of auditors.

Upon completion of its work, the auditor prepares a conclusion on the economic situation of the enterprise, identifies possible financial risks, assesses the effectiveness of the company's management and its accounting support. The audit report also contains recommendations for the management of the enterprise.

As the experience of auditors shows, a qualified and accurate audit report allows a much more accurate assessment of the value of the assets of the enterprise, as well as timely eliminate many of the shortcomings of its management.