How to conduct an audit
Normally, a mandatory audit is conducted before the submission of the annual report. If you audit in several stages, the company can achieve a number of advantages, namely:
- Prices provided for the end of the calendar year are usually higher, because it is at this time that most of the firms conduct audits.
- Your firm will not need to change the data in the accounting and tax records just before the submission of annual accounts.
- Limited time will necessarily lead to errors in the correction.
It is advisable to carry out the audit with the distribution over several periods. For example, mid – year and subsequent third quarter. In this situation, the accounting Department will be a sufficient amount of time to fix various bugs. At the end of the year will remain only to check the fixes on the comments made earlier. The last quarter wasn't so loaded. Thus, the financial burden on the Department is minimal, the cost of the audit is reduced by the phased inspection.
The service, which is carried out by changing the owner, chief accountant, in reorganization, is called action auditing. The main thing in this audit to evaluate the efficiency of the enterprise and the state accounting. In this form of audit, the Manager can check all the departments, which produced the calculations of the cost and correct taxation. The end result, your firm will be able to pass all of a tax audit.
Express-audit is conducted in cases of brief analysis. This can be a period of a certain period of time associated with the change of the chief accountant or various personnel reshuffles in the departments.
In the recommendations of the expert auditor usually contains a number of clarifications to the analysis of the financial activities of the customer. For any audit, the auditor must give the customer-the customer documents, with a detailed report about the done work and the conclusion in which the determination on the correctness of financial statements.
In recent times the services of the auditing firms are in widespread use. Right now, many businesses, even those for which annual inspections are not required, go about the checks more and more often. Responsible selection of auditors and the goals set by the company — the key to a competent business strategy.