What is an audit?

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2020-07-02 22:41:07

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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.

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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.

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