If you are a business, an NPO, or even a public body, you must present financial statements on an annual basis, whether for your shareholders, your members, or the government. As a manager, you probably know that keeping good financial statements, all thanks to audit companies in India, is the best decision to advance the interests of your business or organization while offering a general and detailed understanding to its managers or anyone interested in its activities.
Ensuring that your organization’s management is running according to good bookkeeping is also a healthy exercise in securing what you do. Hiring the professional auditing and assurance services of a recognized accounting firm, can be a wise decision to save time and money.
Compilation, review, and financial audit
The compilation mission of an audit consists of compiling the financial statements of an entity from the information of the organization itself. As part of this mission, the experts firm gathers the data and ensures their accuracy.
An audit allows you to ensure two things: first, the accuracy of your financial statements; and second, the quality of controls carried out within your company or organization at operational and administrative levels.
As part of an audit, the accountant implements several in-depth procedures and analyses to issue an opinion on the financial statements. To do this, the team of audit companies in India performs inspections and audits.
It also examines and assesses the internal control systems of the company or organization by an audit method appropriate to the type of organization, to ensure that your company or your organization is free from material anomalies or whether these are the result of fraud or errors.
An audit normally ends with the production of an auditor’s report, in which an opinion on the fairness of the client’s financial statements is formulated.
Rather than certifying the financial statements, an audit merely states that the financial statements drawn up by the company do not present significant errors. This is only possible through an in-depth analysis of the financial statements themselves and the management report.
The purpose of an audit of financial statements is to get an expert opinion on whether the financial statements of a company reflect the financial position and performance of the entity in all material matters, under the financial reporting basis on which they were prepared.
Crucial to the success of the audit is a preliminary analysis of the company being examined. It is, therefore, necessary to know its core business, its working methodology, its procedures, and the risks it faces while carrying out the activity. And this is one of the main reasons why you shouldn’t assign this task to an inexperienced person but an expert in the field, like audit companies in India.
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