Every entrepreneur understands that effective management and rational distribution of funds are one of the key components of success. Therefore, in order to maintain positive development dynamics, it is necessary to carry out various activities in a timely manner aimed at collecting and analyzing all kinds of data on the operation of the enterprise.
Audits are one of the most common ways to monitor and control the economic activities of a company. Such inspection allows you to highlight the compliance of the reports of the accounting department with the existing regulatory acts that are established by the legislative authorities, as well as the implementation of all the rules described in the economic and legal documentation.
Currently, there are two types of audits : mandatory and initiative. Consider them in more detail.
Initiative checks can be carried out depending on the wishes of the entrepreneur himself. Thus, this type of audit can be carried out at any time, as well as in the volumes declared by the organization. For example, only available cash transactions may be checked . The peculiarity possessed by initiative audits is the ability to exercise complete control over all calculations and operations. Mandatory such a procedure is not carried out due to the significant amount of required procedures.
A mandatory audit, in turn, is an event that takes place every year and is regulated by the legislative authorities. As a result, control and monitoring of financial statements is carried out, as well as financial and economic analysis of the economic activity of the enterprise.
Audits require a conclusion that determines the effectiveness of work and simplifies the organization’s interaction with banks, tax inspectorates and others.
It should also be noted the order of events of this kind. First you need to draw up an information base, on the basis of which control will be carried out. Then various forms of accounting are examined , the level of their reliability and completeness is revealed. Next, the presence of personal job descriptions of all employees of the accounting department is checked. After this, a conclusion follows about the reliability of the display of the organization’s economic activity in the reporting documentation, as well as the compliance of the existing accounting system and the nature of the enterprise’s work.
The audit allows you to identify the presence and composition of administrative documentation, the general accounting policy, as well as the degree of compliance, the methods of accounting and their completeness of disclosure, the conformity of the forms and timing of the adoption of securities that describe the nature of the company. The results of the audit illustrate the financial condition and property results of labor.