What is an audit?


2020-07-02 22:41:07




1Like 0Dislike


Every entrepreneur should clearly understand what audit is and why you need it. Audit activity is a complex of measures aimed at conducting a thorough check of correctness of drawing up and keeping of accounting and financial and tax reporting economic entity. The firm held such a check, the IRS applies more loyal.

Answering the question, what is an audit, I would like to note that this is a credible and independent verification, can improve the firm's image or keep it at the same level. To carry out this activity may be an individual entrepreneur or a special audit organization licensed. Specialist must meet certain requirements and have economic education. Audit of economic entities, not only States the accuracy of financial data, but also reveals errors or misrepresentations in the accounting. In addition, the auditor develops specific measures to improve the efficiency of accounting in the enterprise.

Often the company carries out financial audit, which involves examining financial statements for accuracy and precision. This type of validation can be internal or external. The first is carried out by the economic entity for this purpose, a special Department dealing only with audit. External verification is carried out by special organizations to obtain a license to provide a certain list of services. The activities of private auditors and entire firms are regulated by state authorities and is based on certain legislative acts and regulations.


Staff evaluation: system and methods

Staff evaluation: system and methods

Personnel Assessment allows you to identify how competent the employees involved in the enterprise, and it is the performance of their work – the most significant factor affecting the efficiency of the company. To clarify the impact of performa...

How to start your own business: important aspects.

How to start your own business: important aspects.

Many people, tired of working for someone else, are increasingly thinking about how to start your own business. Someone wants to open a salon, someone store, and someone enough and vegetable stalls. Before you throw in the pool with his head, it is i...

business activities. its essence and basic functions

Business activities. its essence and basic functions

The Entrepreneurial activity of the citizen – is undertaken at your own risk and independent activity, which aims to systematically profit through the sale of works, goods, services, use of the property. The citizen engaged in such activities, ...

The Goal of any audit is to Express an opinion of a specialist about the quality and reliability of the accounting and internal control system. So at the end of the allotted learning all the intricacies of the period, the auditor shall issue a conclusion. The result will be completely positive if the company were found to have significant distortions or errors that subsequently, the economic entity has not corrected. The head of the enterprise may not agree with the results and demand a re-examination, but in any case obliged to pay the auditor in full.

Everyone should understand what an audit is and what is its essence, as it can be carried out forcibly. A mandatory inspection is carried out on the selected entities based on the criteria of the current legislation. This kind of check must be paid, otherwise the audit firm has the right to sue, and the amount set by mutual consent of the parties, force a transfer from the company account in the beneficiary's Bank.

Recently, a special popularity has acquired a quality audit. It involves the study of all aspects of the enterprise activity, its main strategic approach and the identification of conformity of the effectiveness of this program. To this end, we study the performance of the company for a specific period of time, is considered the competitiveness and demand for its products in the market. In addition, the specialist makes a conclusion about possibility of application of selected strategic positions in the future, also the probable result that the company will receive at the end of the reporting period.

Legal entity you should understand what is an audit and what goals it pursues. Since it is merely an expression of opinion of a specialist audit firms on the reliability of financial reporting and the reliability of internal control, and not a statement of fact. In the work of the auditor also have to be different types of disorders, distortion or error, so the disagreement with his conclusion can be expressed in the statement of claim.

Comments (0)

This article has no comment, be the first!

Add comment

Related News

The goals of the organization: features and classification

The goals of the organization: features and classification

 the Success and financial soundness of the company will depend on how well the goals of the organization. This process is determined by the conditions of their implementation on the nearest and long term period. Currently th...

The concept of risk, classification of risks and management

The concept of risk, classification of risks and management

In today's market there is always a necessity to evaluate the risks to effective management of human, material resources to reduce the losses and compensation of their negative effects. the concept of risk includes uncertainty, wh...

Analysis of the use of human resources: challenges and directions

Analysis of the use of human resources: challenges and directions

the Efficiency of labour resources has a direct impact on such qualitative characteristics of activity of the enterprise as profit, cost, production volume etc. So when you will analyze the status of their company or to assess &ld...