Every entrepreneur should clearly understand thatsuch an audit and for what it is needed. Audit activity is a set of measures aimed at conducting a thorough audit of the correctness of compilation and maintenance of accounting records and financial, tax reporting of an economic entity. To the company that passed such a check, the tax service is more loyal.
Answering the question, what is audit, you wantnote that this is an independent and reliable test that can improve the image of the company or keep it at the same level. This activity can be carried out by an individual entrepreneur or a special audit organization that has received a relevant license. The specialist must meet a number of requirements and have an economic education. The audit of economic entities not only establishes the reliability of the financial statements, but also identifies errors or distortions in the conduct of accounting. In addition, the auditor develops specific measures to improve the efficiency of record keeping in the enterprise.
Most often in the company is a financialaudit, which involves the study of financial statements for reliability and accuracy. This type of verification can be internal or external. The first is carried out by the forces of the economic entity itself, for which a special department is created, dealing only with the audit. The external type of verification is carried out by special organizations that have been licensed to provide a specific list of services. The activities of private auditors and entire firms are regulated by state bodies and are based on separate legislative acts and regulations.
The purpose of any verification is to expressthe expert's opinion on the quality and reliability of the work of the accounting department and the internal control system. Therefore, at the end of the allotted time limits, the auditor must issue an opinion. However, the result may be different from absolutely positive, if significant distortions or mistakes were found in the work of the enterprise, which the economic entity did not correct later. The head of the enterprise may not agree with the results and require a re-examination, but in any case is obliged to pay for the auditor's services in full.
Everyone should understand what an audit is and whatis its essence, since it can be carried out and forcibly. Some economic entities undergo mandatory testing based on the criteria of the current legislation. This type of audit is payable, otherwise the audit firm has the right to sue, and the amount established by the bilateral agreement of the parties will be compulsorily transferred from the company's account in the bank servicing it.
Recently, a special popularityquality audit. It involves researching all aspects of the enterprise's activities, its main strategic approach and identifying the conformity of the effectiveness of this program. With this goal, the results of the firm's activity for a specific period of time are studied, competitiveness, demand of its products on the market are examined. In addition, the expert makes a conclusion about the possibility of applying the chosen strategic position in the future, and also estimates the likely result that the enterprise will receive at the end of the reporting period.
A legal person should understand what isaudit and what goals he pursues. Since this is just an expression of the opinion of a specialist in the audit firm on the reliability of financial statements and the reliability of internal control, and not a statement of fact. In the auditor's work, there are also various types of violations, distortions or mistakes, so the disagreement with his conclusion can be expressed in the statement of claim.
