In the course of the implementation of any economicactivities for the development of new production sectors, many business investors conduct a selective or continuous audit of individual areas of the production cycle to determine the feasibility of using all innovations and making a certain economic decision.
According to Art.6 of the Federal Law of the Russian Federation, the following types of audit reports may be issued to auditors: a clear positive conclusion or a modified one. The first is issued by the auditing auditor in a single instance if the enterprise being audited conducts its production and business activities in full accordance with the methods and principles of accounting in the territory of the Russian Federation. Moreover, this opinion is based and documented by primary accounting documents and a thorough study of the activities of an economic entity.
The modified opinion is issued in caseswhen there are numerous factors affecting the quality of the audit and the accuracy of the information provided. For example, it is issued when conducting audit studies on a particular area of production activity, when it is impossible to identify and obtain a strictly defined positive opinion due to the lack of detailed information.
Modified audit report typeswhich can be conditionally divided depending on the influence of various factors, is issued by the auditor when circumstances arise that prevent obtaining complete and fairly reliable information.
To a modified audit opinionOpinions with a reservation, the conclusions with refusal of expression of opinion, and also the conclusions with a negative opinion. Opinions with a separate reservation or a complete rejection of the expression of their opinion are applied by the auditor in the event of an audit restriction or in the selective check of individual components of the entire production process, when certain limited data cannot reflect reality.
Modified audit report and typesit can be made in identifying disagreements with senior officials of the audited business entity. Financial disclosure issues, accounting policies applied and its basic principles, working methods, etc. The inconsistency of the accounting data and the identification of misstatements in the presented financial statements may affect the expression of audit opinion.
The final audit report may beexpressed using the words: “... except for certain circumstances ...” (when expressing an opinion with reservation) or financial statements for a certain financial period contain inaccurate data that do not allow to determine the completeness and accuracy of the presented financial statements.
All types of audit reports (positivea conclusion or any modified one) shall be executed in accordance with strictly defined standards and requirements. Firstly, all audited financial documents are collected in one case, the sheets of which are numbered and signed by the auditor by a sheet. Secondly, all of them are confirmed by the personal stamp of the auditing auditor and are approved by the signature of the head of the audit. Thirdly, the date of signing of the conclusion by the audit manager strictly corresponds to the date of the end of the audit.
It should be noted that after the procedure andthe signing of the audit report, when certain factors affecting the accuracy and correctness of the financial statements appear, the auditor-auditor is not obliged to send inquiries aimed at identifying these circumstances. Legal responsibility for timely informing the audit organization of the circumstances created lies entirely on the management of the company.
All types of audit reports are made onlyon the basis of documentary verification and confirmed by primary accounting documents. A positive opinion can sometimes be the reason for the cancellation of the scheduled tax audit. And in some situations, the types of audit reports can be challenged in court. They may be considered false and unreliable.
Any audit report and its typesunequivocally useful for making economic decisions for all categories of users of financial information, since the audit process reveals many weak points, reveals various inconsistencies in the production process. Therefore, to conduct an audit or not annually is up to investors. But the benefits of it are obvious! This rationalization of costs, and an increase in sales, and optimization of all production stages.
