Business audit

Business audit

Your money is in danger. It is such an offer that can become the motto of your business if it is haphazard and the owner is not responsible for its conduct. One of the signs of a successful business is its audit.

Features of the audit

A business audit is the work of a competent expert or an invited third-party organization to actually assess the state of your production, restaurant, cafe, factory. Business audit is necessary for companies that do not have auditors on their staff, but want to receive an additional independent assessment. This will allow you to find out about all the inconsistencies and eliminate them. Audit is a good prevention for organizations, so you can assess the quality of work and the competence of your employees and promptly learn about possible errors and inconsistencies. How do we audit a business?

• We leave for the enterprise;
• I evaluate the main production and auxiliary processes;
• We analyze the documentation and records you have, as well as contracts;
• We fix inconsistencies;
• We check the risks;
• We speak out all the inconsistencies seen and possible sanctions;
• We draw up a report.

A very common question is, is it possible not to audit a business?

Some companies find it easier to pay the fine to the regulatory authorities than to fix the non-compliance. This is not true. At the first visit, you are given a prescription to correct and may also be issued a fine. If you ignored the order to correct it, then by the second visit the fine will increase and, in some cases, you may end up with another suspension of your business. In addition, an accounting audit of a business is at least an opportunity to bring your business to a new level. Therefore, we recommend that you organize an independent audit – it costs no more than fines.

What are the responsibilities of an auditor?

What does his activity look like in detail? Auditors have the professional task of conducting business audits, in particular, audits of annual financial statements and preparing audit reports on the effectiveness and results of the company. Therefore:

• Auditors act as experts on business management issues;
• Auditors can advise on economic issues and protect interests;
• Auditors can be ahead of the curve.

Another area of ​​responsibility: consulting on business and economic issues, which is also a business audit. For example, auditors are used to support large company transactions in the case of mergers and acquisitions. Other areas of consulting also include strategy, implementation and organizational consulting.

Mandatory audit

Most of the audits concern the financial statements of companies. In addition, the law provides for a mandatory business audit. Companies that are required to conduct a statutory audit of financial statements:

• Enterprises of public interest;
• Public joint stock companies;
• Subjects of natural monopolies;
• Business entities that operate in the extractive industries;
• Large enterprises that are not issuers of securities;
• Medium enterprises;
• Financial institutions related to micro and small businesses;
• State, utilities.

This rule was introduced because, in particular, larger companies bear not only entrepreneurial but also social responsibility, because other companies, investors, lenders, jobs and, ultimately, the general level of well-being depend on their development. Accordingly, the correctness of the financial presentation must be checked and verified by independent auditors.

What does an effective business audit look like?

We offer five quality criteria.

Standards. A system of standards is created for each case. A common mistake of companies is the sophisticated texts of such standards, which are written by theorists.

Frames. In the presence of a competent system of standards, which describe the processes, it is easier to solve the personnel issue. Employees are reasonably trained to fit the needs of the company.

Professionalism. Everything is clear here.

Independence. The auditor is not subordinate to the owner or manager of the legal entity. The auditor is an independent person who analyzes only the facts.

Results of work. The auditor is not so much looking for violations as, using risk assessment, prevents losses. A competent audit is assessed according to the implemented recommendations.

How we work:

Prikhodko & Partners Law Firm will surprise you with the results of the audit. In addition, after the audit, we remain in touch as permanent consultants. Make just one call to our specialists, and this will not only save your money and nerves, but also increase the growth rate of your business.