Through audit tests generally carried out by sampling, the auditor identifies elements that will help him in the analysis, in order to ultimately issue his opinion when carrying out the accounting audit.
Although promoted in Brazil a few decades ago, after the arrival of branches and subsidiaries of large corporations and investments by international companies in Brazilian companies, the carrying out the accounting audit is developing in the country, mainly due to the fiscal aspects of Brazilian legislation.
On the other hand, the opening of capital and the search for foreign markets increasingly drives the need for alignment with accounting standards, making professionals who carry out the accounting audit always be attentive and technically updated.
What is the role of the auditor in carrying out the accounting audit?
The auditor is the professional responsible for examining and validating the company's accounting activities. He will analyze procedures, point out irregularities and prepare reports on the accounting audit, giving his opinion as a professional in the field.
In addition to monitoring changes and updates to national and international accounting standards, carrying out the accounting audit professionals need to invest in gaining knowledge of all areas of the company they serve, as both a small change in standards and a change in operations can directly affect the company's operations.
This vast field of auditing requires specific training from professionals, and in Brazil the carrying out the accounting audit it can only be done by Bachelors in Accounting Sciences who have duly passed the Federal Accounting Council (CFC) exam and are registered with the Securities and Exchange Commission (CVM).
Another mandatory requirement for the accounting audit, especially for those who need to work in companies regulated by the CVM, BCB and SUSEP, is passing the Technical Qualification Exam, regulated by the Brazilian Accounting Standard NBC PA 13.
The professional working in carrying out the accounting audit constantly updates, following the requirements of the Continuing Professional Education Program, which is regulated by NBC PG 12. For professionals registered in the National Register of Independent Auditors (CNAI), constant updating is also required.
It is a fact that the accounting audit has been gaining more and more space and importance, mainly due to the effects of globalization, so that the demand for professionals in the area increases proportionally. Not only professionals who are up to date in legal aspects, with theoretical and practical qualifications, but also possess ethical conduct in the exercise of their profession.
What is the difference between accounting and accounting auditing?
A accountingand carrying out the accounting audit They are essential business functions that, although distinctly different concepts, can be interrelated. Companies must set up a system of accounting before opening its doors to manage and record financial data, but the accounting audit It can also be essential for monitoring and improving practices and information credibility. Understand the definitions of accounting e accounting audit, as well as the correlation between the two, is vital to understanding business finance.
A accounting is the systematic process of classifying, storing and presenting a company's financial data. Accountants keep complex records of all financial transactions, including recognizing sales revenue and expenses, as well as costs such as payroll and taxes. The accounting cycle begins with transaction receipts and other original financial documents. Accountants record all financial events in individual accounts, most often using an accounting program. accounting. Using information stored in company accounts, accountants routinely prepare financial statements, such as balance sheets and income statements, to provide internal and external stakeholders with relevant information of a company's financial position.
A carrying out the accounting audit is the process of reviewing and researching any aspect of a company, financial or non-financial. Auditors are fully trained to detect areas of need for improvement, potential hazards and incidents of unethical conduct in their area of expertise. An accounting audit can disrupt the normal flow of business in a company, but the ability to detect and resolve potential weaknesses can overcome any temporary losses in productivity. Among the various issues, the accounting audit can review human resources policies, operational procedures, quality or safety policies and, of course, all types of information generated by the accounting.
A carrying out the accounting audit combines these two distinct concepts and can convey significant benefits to both small and large companies. One accounting audit, by definition, is a systematic review and investigation of the policies, procedures and systems implemented to record, store and present financial data within a company. A accounting audit covers the full range of the accounting cycle, looking for inconsistencies, inefficiencies, errors and incidents of unethical conduct at every stage of the process. A accounting audit begins by analyzing the systems implemented to ensure that the accounting receive all transaction documents in a timely manner. A accounting audit review the system accounting in depth to ensure all necessary accounts are present and maintained accurately. A carrying out the accounting audit also reviews the financial statements and the processes used to prepare financial statements.
How the Accounting Audit is carried out
Transparency and reliability are some of the characteristics for a company to stand out in the market. Therefore, investors need to know about the real financial and economic situation of companies, as well as entrepreneurs need to know whether their company is complying with accounting standards. To meet this need, work is carried out on carrying out the accounting audit, which systematically examines a company's financial records.
The main objective of accounting audit is to analyze whether the information contained in the financial statements correctly reflects the asset, financial and economic situation of the audited company, combating fraud and preventing irregularities. The information that accounting audit provides are safe and transparent, enabling the identification of flaws in the company's financial operations.
The process of carrying out the accounting audit is guided according to Brazilian guidelines and standards, starting with a meeting of the audit team, which will choose the best strategy and specify the work procedures that will be adopted to obtain evidence, according to the most appropriate criteria for each area. At this stage of the accounting audit, it is very important that the auditor has a preliminary understanding of the company's operations and the business in which it operates.
Once the work strategies are defined, the accounting audit collects company information and documents. With this information in hand, the auditor will basically apply tests to achieve transparency in accounting records. However, before the testing phase, the accounting audit documents in detail the company's entire accounting system, as well as its respective controls, aiming to detect significant points that strengthen or weaken the system.
In the testing phase, the objective is to determine whether the controls are being complied with according to standards and to verify whether the internally established controls actually work and, if so, whether they work in accordance with the prescribed rules. This phase of carrying out the accounting audit involves steps such as: checking financing and loans, checking the existence of stocks, testing income and expenses, testing cash and banks, checking tax payments, among others.
In the next phase of substantive testing, the accounting audit performs procedures to ensure the accuracy of values reported in accounting records. It then analyzes the results obtained in the tests and assesses whether they are adequate with the financial statements and explanatory notes. We then arrive at the audit report, written by the auditor in accordance with Brazilian accounting standards.
The audit opinion is the final product of the carrying out the accounting audit, which indicates whether the company's financial statements actually comply with prescribed standards and legal aspects. This auditor's opinion is what certifies whether the company complies with laws and regulations, as well as recording the existence of fraud, if applicable, in addition to confirming the company's real assets.
A accounting audit It generally happens by force of law and regulatory bodies, but can be requested spontaneously, both by public and private companies. The auditor's opinion strengthens the company among its partners, shareholders and investors.
Advantages of Accounting Audit
There are several types of audit, but one of the most sought after is the carrying out the accounting audit, which meets legal requirements in some cases, but is also important in cases of acquisitions, incorporations or business dissolutions, as well as for decision-making purposes.
The objective of the accounting audit consists of proving, through analysis of accounting records, the accuracy of the assessed assets. After this analysis, the accounting audit presents any errors or irregularities (fraud) found and provides suggestions for immediate measures and/or process improvements, depending on the events presented.
A carrying out the accounting audit is carried out through techniques and procedures, which create possibilities for identifying any errors or irregularities that may exist in the entries contained in the financial statements, as well as recognizing and validating the equity components.
Furthermore, accounting audit It is a powerful source of information for investors, as it allows, through conferences and analysis of accounting records, to transparently validate the “health” of the company.
The management of the audited company also enjoys the benefits of accounting audit, as it receives, in addition to the opinion on the adequacy of the financial statements, suggestions for improvements in operations and tips for obtaining updated information that contributes to decision making.
The benefits of accounting audit are reflected in society, promoting credibility and veracity of information, which contributes to the stability of companies and, consequently, guarantees of jobs. The tax authorities also benefit, because the carrying out the accounting audit contributes to the correct compliance with tax laws.
Many other benefits arise from carrying out 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 presenting accurate and detailed information to their partners , increasing credibility.
A accounting audit is carried out by an auditing firm or independent auditor, which in addition to reviewing the accounting information and validating the reliability of the records, also reports irregularities or failures in operations, when necessary, especially if these occurrences affect the financial statements. One carrying out the accounting audit quality must have, in addition to independence, objectivity, clarity and impartiality.
Results obtained in the Accounting Audit
Na accounting audit the financial situation of a company is verified, ensuring the accuracy of accounting records and the efficiency of internal controls. However, the carrying out the accounting audit, in addition to benefiting the company in the financial, economic and patrimonial sectors, it reflects positively on other areas, such as administrative, fiscal, technical and social.
Since in accounting audit The professional will record his opinion on the company's real financial situation, it is an essential service for the entrepreneur, as it will make him aware of possible errors and irregularities, also suggesting the respective solutions.
Brazilian legislation makes the accounting audit mandatory for some companies, such as financial institutions, publicly traded companies, consortiums and health plans. However, when not legally required, the process of carrying out the accounting audit It is also highly sought after so that entrepreneurs can visualize whether the company is achieving its objectives and/or detect whether there are frauds or failures in the processes.
One way or another, the accounting audit will always benefit management, as the critical and detailed look of the specialized professional is a great difference in establishing the company's credibility and security, in addition to helping to guide decision-making.
It is important to highlight that, although carried out by a trained and specialized professional, there are also limitations in carrying out the accounting audit. Notes may arise outside of accounting, asset control or other areas assigned to the service. In these cases, other professionals must become involved.
Therefore, a report accounting audit it can present confirmation of the coherence of the company's accounting operations, in which they are in compliance with accounting standards, but it can also present the existence of errors or fraud, causing failures in internal controls.
Errors are considered by accounting audit, cases in which there was no intention of irregular practice. Fraud is characterized by intentional action, such as falsifying documents or omitting accounting transactions. In that case, the carrying out the accounting audit records the communication directly to the company, respecting professional secrecy and recommending the appropriate measures.
By choosing to carry out the accounting audit, partners and shareholders will obtain detailed information about the company's real economic situation, as well as the efficiency of its internal controls. Furthermore, the accounting audit helps the company by increasing its credibility with banks and suppliers, as well as increasing its value among potential investors.
Please contact TATICCA, which operates with integrated services auditing, accounting, taxes, corporate finance, financial advisory, risk advisory, technology, business consultancy and training, for more information, visit www.taticca.com.br or email taticca@taticca.com.br and find out more. Our company has professionals with extensive experience in the market and has certified methodologies for carrying out activities.