The audit is considered one of the most important elements in the market infrastructure, ensuring the protection of the property interests of the owners. A prerequisite for this type of financial control was the mutual interest of both the state and enterprises in ensuring the honesty and transparency of reporting and accounting.
Goals and objectives of the audit
An audit is a type of activity that is based on the collection and assessment of facts. This activity is carried out exclusively by an independent authorized person. In addition to eliminating errors in reports and establishing the veracity of information, the audit ensures the development of various recommendations to increase the effectiveness of the subject.
The main purpose of an audit of finished products is to establish the real amount of capitalized products and to eliminate errors in calculating the received sales proceeds. This type of audit performs several tasks:
- confirms the correctness of the choice and application of the method for evaluating products;
- confirms the initial assessment of accounting and control;
- establishes the completeness and correctness of the posting of products;
- confirms the actual volumes of products sold and their cost.
In the process of conducting the audit, the company is obliged to provide the auditor with all the necessary documents, including supply contracts, warehouse accounting cards, price lists, invoices, invoices and others.
Stages of finished product audit
The whole process of audit of finished products is conventionally divided into three main stages - familiarization, main part and conclusion.
At the introductory stage, the auditor examines all provided accounting statements and records, establishes the correspondence of the data in the statements to the balance sheet data. In addition, the auditor must ensure that the data on the amounts of sales are reflected in the income statement in full. Also, at this stage, analytical procedures are carried out and it is checked how correctly the method of evaluating the finished product is recorded in the organization's accounting policy.
At the main stage, the auditor needs to make sure that all accounting entries are correctly compiled and displayed, and that the procedure for reflecting all transactions is observed. If there are any deviations, it is checked how correctly the sums of these deviations are distributed between the goods sold and its remains in the warehouse.
At the final stage, when all inspections are completed, the auditor needs to form a package of documents that includes the auditor's opinion on the results of the audit, the audit report and the auditor's recommendations. All of these documents are handed over to the person in charge of the audit, along with the verified working documents.
