Audit Services
Statutory and Voluntary Audit of Financial Statements
Audit of financial statements is a legal obligation for certain entrepreneurs and non-profit organizations. However, it may also be performed voluntarily by other entities seeking to verify the accuracy and reliability of their financial reports.
Purpose of Audit
The audit is conducted to test the existence, completeness, and valuation of balances and transactions presented in the financial statements.
Audit Procedures Include:
- Understanding the company’s business operations
- Documenting, reviewing, and assessing the internal accounting control systems
- Observing and supervising physical inventory counts
- Gaining insight into business processes and systems for recording financial information and preparing financial statements
- Verifying whether financial information is recorded completely, promptly, and with proper authorization
- Examining accounting policies to ensure they:
- Comply with accounting standards
- Are applied appropriately and consistently
- If changes are made, assessing whether disclosures were adequate
- Obtaining management explanations for unusual fluctuations or inconsistencies in the financial statements
- Investigating discrepancies by using established audit methodology, especially concerning the Balance Sheet and Profit and Loss Statement
- Comparing current results with those from prior periods and expected outcomes, and discussing significant changes with management
- Reviewing events occurring after the balance sheet date
- Ensuring that significant revenues and expenses are recognized in the correct periods
- Analyzing extraordinary and unusual items
- Considering relationships between related items (e.g. income and assets), as well as other available information relevant to the auditor
- Verifying materially significant items in the financial statements, with focus on those flagged as high audit risk in the audit plan, such as:
- Trade receivables
- Impairment of receivables and payables as of a specific date
- Inventories
- Investments
- Ownership and depreciation
- Prepaid expenses and accrued income
- Intangible assets and other assets
- Loan liabilities
- Liabilities to suppliers
- Accrued but unpaid and contingent liabilities
- Corporate income tax and other taxes
- Subsequent events and legal disputes
- Share capital, etc.
Final Deliverables
Preparation of the final audit report of the financial statements, including a Management Letter if deemed necessary.