Audit checks - what is it?

Every entrepreneur understands that an effectivemanagement and rational allocation of funds are one of the key components of success. Therefore, in order to maintain the positive dynamics of development, it is necessary to carry out various measures in a timely manner aimed at collecting and analyzing all possible data on the work of the enterprise. Audits are one of the most common ways to monitor and control the economic activities of a company. Such an inspection allows us to highlight the compliance of the accounts department's reports with the existing normative acts that are established by the legislative authorities, as well as the fulfillment of all the rules described in the economic and legal documentation.

At present, there are two types of audits that are distinguished: mandatory and proactive. Let us consider them in some detail.

Conducting an audit

Initiative audits can be conducted independing on the wishes of the entrepreneur himself. Thus, this type of audit can be carried out at any time, as well as in the volumes declared by the organization. For example, only the available cash transactions can be checked. A feature that proactive auditing possesses is the ability to exercise complete control over all settlements and operations. Without fail, such a procedure is not carried out due to the considerable volume of required procedures.

Mandatory audit, in itsturn, is an event that takes place every year and is regulated by the legislative authorities. As a result, control over and monitoring of financial statements, as well as financial and economic analysis of the company's economic activities are carried out.

Compulsory audit

Audits require an opinion that determines the effectiveness of the work and simplifies the interaction of the organization with banks, tax inspectorates and others.

It should also be noted the procedure forevents of this kind. To begin with, it is necessary to compile an information base on which to base control. Then various forms of accounting are investigated, the level of their reliability and completeness is revealed. Further, the availability of personal job descriptions of all employees of the accounting department is checked. After this, a conclusion is made about the reliability of the mapping of the organization's economic activity in the reporting documentation, as well as the compliance of the existing accounting system and the nature of the enterprise's operation.

An audit provides an opportunity to identifythe availability and composition of administrative documents, the general accounting policy, as well as the degree of compliance, the methods of accounting and their completeness of disclosure, the conformity of forms and timing of acceptance of securities that describe the nature of the company's activities. The results of the audit illustrate the financial condition and property results of labor.