The benefits of accounting audit are reflected in society, promoting credibility and veracity of information, which contributes to the stability of companies and, consequently, job security. Also, the tax authority benefits, because the accounting audit contributes to the correct compliance with tax laws.
Many other benefits arise from carrying out an accounting audit, for this reason not only publicly traded companies that have the obligation for legal purposes, but other companies opt for the service, as they see in it the search for transparency and improvement of their image in the market, in addition to to present accurate and detailed information to its partners, increasing credibility.
The objective of an accounting audit is to form a view on whether the information presented in the financial statements, taken as a whole, reflects the equity, financial and economic position of the organization on a given date. The organization's management prepares the financial statements in accordance with legal requirements and financial reporting standards. The organization's directors approve and the external auditors begin their examination, understanding the organization's activities and considering the economic and industrial issues that may affect the business during the reporting period. For each main activity listed in the financial statements, the external auditors identify and assess any risks that could have a material impact on the financial position or financial performance, as well as some of the measures (called internal controls) that the organization has implemented to mitigate those risks.
Based on the identified risks and controls, the external auditors consider what management has done to ensure that the financial statements are accurate and examine supporting evidence. The external auditors then make a judgment as to whether the financial statements presented as a whole reflect a true and fair view of the organization's financial results and position and its cash flows, and whether it complies with national and international accounting standards. Finally, the auditors prepare an audit report, which presents their opinion to the shareholders or members of the organization.
External auditors discuss the scope of the audit work with the organization, directors or management, and may request that additional procedures be performed. The external auditors maintain the independence of management and directors so that tests and judgments are made objectively. External auditors determine the type and extent of audit procedures that will be carried out, depending on the risks and controls they have identified.
The management of the audited company has the benefits of the accounting audit, as it receives, in addition to the opinion on the adequacy of the financial statements, suggestions for improvements in operations and tips to obtain updated information that add to the decision-making process.
Get in touch with TATICCA – ALLINIAL GLOBAL, which operates throughout Brazil and globally, with integrated auditing, accounting, tax, corporate finance, technology, risk advisory, business consulting and training services. PFor more information, visit www.taticca.com.br or e-mail taticca@taticca.com.br and learn more. Our company has professionals with extensive experience in the market and has certified methodologies for carrying out activities.