What is financial audit

The concept of financial audit is sometimes confused with a tax audit, which is carried out by authorized tax officers in the event of suspicion of the unreliability of the organization's reporting data in order to identify violations of tax legislation. Financial audit has other reasons, performers, haunting other purposes.

Financial Audit - Check for the accuracy of information in the financial statements of any organization, which can be carried out both by the specialists of the organization itself and third-party audit firms on the order of management.

Financial audit is carried out in various types of organizations: commercial, religious, government, governmental, etc. The results of financial inspection are used by the management and management department of the Organization for analyzing the work of financial service and accountingmaking decisions and further planning activities. Investors carefully learn the report data to adequately assess the prospects and risks of the organization.

A signal to conduct a financial audit is the impending tax audit, the occurrence of debts and large costs in the production or loss of financial manageability, as well as the need to sell a business or attract investment.

Financial audit provides for the study of the accounting and financial statements of the Organization, its analysis and search for inconsistencies with legislative norms and standards. As a result, auditors provide a report - an official document that confirms or refute the accuracy of the reporting of the organization. Also, specialists are developing recommendations for a decrease in financial risks.

For a more objective analysis of the financial and economic activities of the organization, it is better to resort to the services of third-party audit firms in order to have an impartial report.