Audit methodology reporting
Reporting audit methodology includes several parameters, and has a clear sequence of actions, the one wich the expert follows in the audit.
Methodology prepared in accordance with International Financial Reporting Standarts (IFRS). An according to it, during the audit, the auditor shall verify:
- now conducted financial transactions and their compliance with existing rules and regulations;
- accuracy of these data and the correctness of transactions in the accounting records of the enterprise;
- correct procedures for the preparation of financial statements and their conformity with IFRS.
Also taken into account during the audit:
- transactions with cash;
- transactions with securities market instruments;
- assets of the enterprise;
- settlements with debtors and creditors;
- financial results of the company for a certain period of time and the distribution of profits;
- directly to the quality of management.
Auditor helps to organize and evaluate the existing system of internal control and workflow, which avoid the most significant operational risks.
During the audit, the accounting of the profit and loss account, the balance sheet is correct, the auditor evaluates whether all the assets and liabilities are reflected in the report and what documents it used and reflected.
An important role plays and the actual method of valuation of property, which may significantly deviate from that adopted in determining the entity's accounting policies.
For the preparation of the audit opinion specialist must also verify the correctness of correlation of income and expenses for these reporting periods, as well as distinction in accounting for current costs of production and capital investments.
The specialist will also assess whether the statements are not contradictory information, whether there are grounds for inclusion in the reporting of amounts specified therein, if the company owns all of the assets and liabilities.
Plays an important role and the corresponding amount of individual transactions to the data given in books and journals of analytical accounting:
- whether they are summarized;
- whether the totals to the data given in the General ledger.
The main objective of the audit reports - an objective evaluation of the reliability, completeness and accuracy of presentation of financial results of the company for a certain period.
The validation process will offer its specialist undertake necessary adjustments and consulting work.
