Audit checks - what is it?

Every entrepreneur understands that effective management and rational distribution of funds are one of the key components of success. Therefore, in order to maintain the positive dynamics of development, it is necessary to carry out various measures in a timely manner aimed at collecting and analyzing all possible data on the work of the enterprise. Audits are one of the most common ways to monitor and control the economic activities of a company. Such an inspection allows us to highlight the compliance of the accounts department's reports with the existing normative acts that are established by the legislative authorities, as well as the fulfillment of all the rules described in the economic and legal documentation.

At the present time, there are two types of audit checks: mandatory and proactive. Let us consider them in some detail.

Initiative checks can be conducted 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 amounts declared by the organization. For example, only the available cash transactions can be checked . A feature that proactive audit checks have is the ability to exercise complete control over all settlements and operations. Without fail, such a procedure is not carried out due to the considerable amount of required procedures.

An obligatory audit, in turn, is an event that takes place every year and is regulated by the legislative authorities. As a result, control over and monitoring of financial statements, as well as financial and economic analysis of the company's economic activities are carried out.

Audits require a conclusion, which determines the effectiveness of the work and simplifies the interaction of the organization with banks, tax inspectorates and others.

It should also be noted the procedure for holding such events. To begin with, it is necessary to compile an information base on which to base control. Then various forms of accounting are investigated , the level of their reliability and completeness is revealed. Further, the availability of personal job descriptions of all employees of the accounting department is checked. After this, a conclusion is made about the reliability of the display of the organization's economic activities in the reporting documentation, as well as the compliance of the existing accounting system and the nature of the enterprise's operation.

The audit allows you to identify the availability and composition of administrative documents, the general accounting policy, as well as the degree of compliance, the methods of accounting and their completeness of disclosure, compliance with the forms and timing of acceptance of securities that describe the nature of the company. The results of the audit illustrate the financial condition and property results of labor.