What are the main points in an audit of annual financial statements?
Is the accounting properly done? Did you comply with the laws, statutes, articles of association and contracts? Has the company established a functioning internal control system in accounting? Have the provisions and accruals been calculated correctly? Are there tax-related risks? Have turnover and expenses been cut off correctly? Are the stocks valued properly? Was the depreciation correctly calculated? Are the accounts receivables shown still recoverable? Can the intangible assets be entered into the balance sheet? Many such questions have to be accurately answered at the time of an audit of financial statements. Find out here if your company needs to be audited.
When does it pay off to have a voluntary annual audit done?
The minimum audit scope for statutory annual audits is mainly specified by law. The content of voluntary annual financial audits largely depends on the audit assignment.
A voluntary audit of annual financial statements can be very useful if e.g. the owners have little insight into the operative business of the company or do not have sufficient detailed knowledge in accounting and want to be assured of the correctness of the annual financial statements. The audit thus also serves as a check on the management. This is particularly useful when the management’s integrity is in question or if the company is to be sold. If you have received a loan from banks or other lenders or you want to apply for a loan, reliable data needs to be submitted. An audit opinion of a chartered accountant on the basis of a voluntary audit of the annual financial statements lends it with high credibility and gives you a better chance to obtain a credit or favorable credit terms.
In case of a voluntary audit of annual financial statements, we act as chartered accountants as well as competent experts and provide important information on the true and fair view of the assets, liabilities and earnings position of the company in the audited period. We do that in giving you our opinion, an audit report and also management letter, if needed.