Doing an audit, an independent review of the documentation is carried out to determine its reliability in all material aspects. This procedure is carried out by an individual auditor or top audit firm in India.
It is noted that organizations often resort to distorting accounting data to reduce the tax burden. In such a case, to obtain objective information about the business, the reasonable use of resources, the timely and correct payment of taxes, an audit of financial statements, and an analysis of the activities of the enterprise is carried out.
The procedure for auditing financial statements
The service includes the following steps:
- Planning and preparing for the audit. At this stage, the auditor examines the activities of the organization, draws up a work plan, and requests the required documentation.
- Collecting evidence and analysing information. All requested documentation is examined. If necessary, specialists involved in accounting support are interviewed. Information is grouped and systematized.
- Issuance of an opinion. This document allows you to judge the reliability of the reporting and the quality of accounting support. Obtaining an auditor’s report is undoubtedly considered the main purpose of an audit.
The experts of will check the correctness and completeness of the formation of accounting records, primary documents, and the correctness of their execution, the reliability, and the correctness of the formation of financial statements. Not only to confirm financial statements but also to identify and eliminate tax risks.
When may an audit of an organization’s financial statements be necessary at the discretion of management and its owners?
- In connection with building a strategy for foreign economic activity.
- In preparation for a tax audit.
- When the organization is undergoing global structural changes
- When developing a new market, etc.
Checking the procedure for drawing up and submitting reports on compliance with the norms and rules of the current legislation, expertsconsider the specifics and types of activities of the organization. After an audit is performed, the auditor gives an opinion on the important aspects of the company such as the level of reliability of the accounting (financial) statements of the company that has been audited.
Conducting a financial audit does not require stopping the company and does not entail any restrictions on current activities. It is only necessary to allow the specialist to study the documentation available carefully and comprehensively in the organization.
As a rule, a financial includes a tax audit (diagnostics of tax reporting), as well as an audit of financial statements.
With the help of such an audit, firstly, you will learn how honestly and correctly your employees prepare financial statements. Secondly how promising is the contractual work. Thirdly how economically profitable the organization’s resources are.
But the most important thing- you will receive recommendations from specialists of top Indian audit firms and will be able to eliminate all existing shortcomings and obstacles on the way to the stable and successful operation of the enterprise.
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.
Posted by:
CA Aman Aggarwal
AKGVG & Associates