An audit of annual financial statements is mandatory for many companies and matters to professional stock-market participants, shareholders, foreign investors and domestic lenders. It gives an independent professional opinion on whether the company's reporting complies with the law and the applicable standards. Read on to learn why it has become indispensable and how to bring in a qualified specialist.
How the process works
Financial statements are closely tied to the corporate income tax return (податкова декларація з податку на прибуток): most taxpayers file them together with the return, and the taxable profit is calculated by adjusting the pre-tax financial result shown in the statements. At the same time, figures confirmed by an independent audit earn the company the trust of investors, lenders and future partners.
Keep in mind that an annual financial statements audit takes time, so it cannot be started a week before the results are due to be published. The auditor first needs to understand the client's business and plan the audit, and only then begin the fieldwork. This ensures that all the required areas are covered and properly assessed. At the end of the audit, the business owner receives:
- an auditor's report on whether the financial statements are reliable and comply with the law;
- recommendations on correcting or eliminating the problems found during the audit;
- a wider review: a thorough auditor also analyses accounting and tax records and identifies tax risks, with practical advice on resolving any problems found.
Engaging a qualified auditor for the annual audit strengthens the trust of partners, lenders and investors and frees you from having to manage the process yourself. An experienced auditor working to International Standards on Auditing (ISA) and Ukrainian law uses proven methods to deliver the results on time, so you can spend your own time and energy elsewhere. That is exactly why people turn to a specialist, isn't it?
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