Audit is a form of organizational control that is an integral part of the market infrastructure. It is an independent audit and analysis of the financial statements of an enterprise by persons entitled to carry out such an audit.
Instructions
Step 1
The purpose of the audit is to determine the reliability of the reporting prepared by the business entity, the completeness of the information presented in it, as well as the compliance of the information provided with the legislation and the requirements for accounting.
Step 2
The person carrying out audit activities is an auditor - a qualified specialist who, in accordance with the legislation, has the right to conduct inspections. The auditor must be able to collect the necessary facts and understand the criteria against which these facts need to be assessed.
Step 3
The facts that relate to the subject of the audit are assessed in accordance with the existing standards, which can be established externally, if an external audit is carried out, or on the basis of plans and directions of the enterprise in an internal audit.
Step 4
As a result of the audit, an auditor's report is drawn up. With its help, the auditor informs users of the enterprise's statements about the circumstances discovered during the audit and about the conclusions made.
Step 5
Audit can be external and internal. External audit involves a system for evaluating reporting, internal control, checking and analyzing the property of the enterprise and the sources of its formation. Its main task is to establish whether the data provided in the reporting corresponds to its financial position. External audit is carried out by auditing organizations invited from outside.
Step 6
Internal audit is the work of an internal audit function or an internal control function. She carries out a systematic audit of the activities of the enterprise. The results of internal audit are used by the organization's management to manage and analyze the current state of affairs.
Step 7
An audit can be voluntary or mandatory. A voluntary audit is carried out at the request of the client, if verification of his activities is not provided for by law. In contrast, a statutory audit is prescribed by law, and an enterprise is obliged to invite auditors to conduct it.
