Statutory audit of an organization
What is a statutory audit of an organization
A statutory audit is an examination and confirmation of the reliability of the company’s accounting.
The organizations that are subject to conducting a statutory accounting audit should make an audit each year.
For whom is a statutory audit binding
An accounting audit is binding for the following objects:
— all kinds of companies by shares;
— Banks and insurance companies;
— organizations with revenue of more than 400 million;
— companies with a total assets of more than 60 million at the end of the year;
— various exchanges;
— state and municipal organizations;
— non-governmental funds that accumulate pension savings;
— legal bodies related to the mortgage business;
— organizers of commercial lotteries;
— organizations involved in the collection and storage of credit histories of citizens;
— microfinance organizations;
— clearing organizations.
Peculiarities of a statutory audit
During the accounting audit the specialists analyze the registers for the year that precedes the current one. Based on the results of the regular analysis the auditors form their opinion on the fairness of financial statements and its compliance with the legislation.
The statutory audit report can be unmodified and modified.
Unmodified report is a report in which the auditor confirms that the financial statements give a true and fair view of the financial situation of the audited company and the results of its activity.
Modified report is a statutory audit report for individual disputable situations. In the conclusion of such report the auditor can express an opinion with a proviso, a negative opinion or diverge from an opinion.
An opinion with a proviso is expressed in the cases, when the auditor reveals significant misstatements, but they do not concern most of the financial statements.
Negative opinion is expressed when the auditor reveals significant misstatements relating to many elements of the financial statements.
If the organization’s leadership impedes the audit, then the auditor refuses to express an opinion.
The obtained statutory audit report is provided to the following organizations:
— statistical authorities;
— interested companies involved in obtaining a tender or a loan;
— inspection authorities.
The audit report has to be drawn up in writing. To the report the package of numbered and stitched documents is attached. The accounting audit report is signed by the head of the audit company or by an authorized person who conducted the audit.
Why it is worth to order a statutory audit at «Audit Center Standard»
During the years of work, the specialists of «Audit Center Standard» have accumulated a wealth of experience and high-level knowledge. They constantly raise the level of their qualification and regularly pass professional testing.
Having chosen the «Audit Center Standard» for the statutory audit, you will receive:
— the independent analysis of financial statements;
— the report that corresponds to the norms and standards of legislation;
— individual approach;
— flexible pricing policy