The activity of any enterprise involves the sale of its goods or services to third parties. In fact, the sale of goods and services of an enterprise is the main source of income and, consequently, the profit of the enterprise, therefore any errors in settlements with customers can be critical, since the main result of the company’s activity directly depends on it - its profit. In order to prevent errors in settlements with customers, an audit of settlements with customers and customers is carried out. In this article, we briefly introduce readers to the basic principles of verifying this area of the company.
Like any type of audit of the financial condition of an enterprise, the audit of settlements with customers and customers is regulated by international audit standards. Thanks to this, a single format for conducting checks of settlements with clients by firms around the world is achieved. In order to check the status of settlements of the enterprise with customers, you must perform the following steps:
First of all, it is necessary to check the data on all customers of the enterprise, to get an idea of how much goods or services are purchased, how they are paid for, whether customers owe to the company, or, conversely, the company owes to customers. With this in mind, the following verification steps will be carried out.
Audit of settlements with buyers and customers also refers to the verification of all settlement documents with clients of the company. It is necessary to establish what operations were carried out, whether goods were shipped, and whether money came from customers for them. If there is a receivable, it is necessary to assess its reliability or doubtfulness, and then give recommendations to the company management on further actions with dishonest customers.
It is also worth noting that the correct conduct of this type of audit, such as audit of settlements with buyers and customers, can reveal errors not only in the relationship of the company with customers, but also in other areas of the company. For example, sales volumes somehow correlate with production volumes. Obviously, the volume of production will also correlate with the volume of remuneration of employees of the company. Thus, it is not uncommon when, after checking the relationship of the company with customers, it is necessary to conduct an audit of settlements with personnel for pay. Such causal relationships are not uncommon in audit practice, since, in fact, all operations of an enterprise are integral parts of the life of its single economic organism. So, say, a personnel audit can be carried out after checking the calculations of tax deductions in case the amounts of deductions for personnel do not coincide with the data on the staffing table.
As you can see, this type of verification is extremely important for the company, as it relates to the main source of the company's profit. The audit of settlements with buyers and customers ends with the issuance of a special letter of opinion, which indicates all the results that the auditors reached in the course of their audit. As you know, inspectors are obliged to be responsible for the results that were provided in the letter, and can expect claims from the client if he was incurred as a result of an inferior inspection. We remind you that regularity, attentiveness, focus on the subject of verification and the independence of the auditor from any influence are the keys to a successful audit, and therefore - the growth of the auditor's reputation as a reliable partner.
We hope that with the help of this article our readers were able to understand such a difficult topic. We wish you successful checks and a minimum of errors!