An audit of financial statements affects investors. It is carried out to establish their trust, to obtain information about the state of the business.
Investors want to have all the information about the effective management of the internal control mechanism. With the help of an audit of financial statements, you can check the rationality of accounting records, the correct display of transactions.
The auditor’s work is based on financial statements, the analysis of which considers the influence of various factors.
But often the amounts reflected in the reports do not in themselves say anything, and the grouping of articles does not correspond to the logic of analysis; they must be deciphered considering additional information that is not always available in the financial statements.
The essence of the audit of financial statements
Financial statements are summary indicators that characterize the activities of business entities for a specific time.
Based on the results, other economic and financial analyses are carried out, and optimal decisions are made. For the percentage of acceptance of the error to be minimal, you need to have reliable reporting.
To avoid mild misrepresentation, an independent expert is invited to provide a false report. By inviting an audit firm in India, you get the opportunity to conduct a detailed audit of the documentation, conduct business, and receive a report on the real situation of the enterprise.
The auditor first proceeds to solve the following tasks:
- Control over the maintenance of documentation by the requirements of the legislation;
- Verification of indicators of completed documents;
- Control of the display of all operations.
During the audit of all documentation of the enterprise, the auditor guarantees:
- Observance of independence;
- Auditor ethics;
- Professional execution.
Making mistakes by the auditor in the process of work, not identifying existing financial documents can contribute to the adoption of inappropriate decisions. As a result, business performance can be jeopardized. Read More: Interest Paid for Late Payment Under Import: RCM Applicable?
Analysis and audit of financial statements imply:
- Obtaining independent, complete information about the financial condition of the enterprise;
- Providing conclusions based on reviewed and verified documentation;
- Submission of identified errors, remarks, and ways to correct them in a separate document;
- Formulation of a complete auditor’s report.
From practice, there are attempts to provide distorted information for their selfish purposes, the unintentional admission of mistakes by employees of the enterprise. The most common mistakes are found in inventory readings, audits of an organization’s financial statements with imprecise mathematical rounding. Inconsistency in filling out the report form, other violations.
The invited specialist who conducts the check identifies all inaccuracies and violations. Give recommendations on how to correct them so that the enterprise will continue to function profitably.
Choosing a reliable specialist
Today it is very easy to choose the best audit firms in India. You do not need to view and call all the ads, just go to the desired site. The firm has a convenient web resource with detailed information. Find out the list of services, contact the staff for information of interest. Leave a request, preliminary calculate the cost of the required service – this will significantly save your time.
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