An audit of financial statements is a requirement for large companies and enterprises. Along with the obligation come real benefits: the audit strengthens the trust of shareholders, financial institutions and potential investors in your firm. Read on to find out how to get the audit right.
How the process works
A financial statements audit is mandatory for:
- public interest entities;
- public joint-stock companies;
- companies in the extractive industries;
- financial companies.
Beyond these, an annual financial statements audit is mandatory for medium-sized and large enterprises. Under the Law of Ukraine "On Accounting and Financial Reporting in Ukraine" (Про бухгалтерський облік та фінансову звітність в Україні), a company falls into these categories when it exceeds at least two of three thresholds: an average of 50 employees, EUR 4 million in balance-sheet assets and EUR 8 million in net revenue. The audit gives the owner a reliable report on the company's current financial position as well as information on weaknesses in its internal control system. By following the auditor's recommendations, you can make your accounting more reliable and efficient and correct errors in good time. An auditor's report is also the best evidence of your organisation's integrity if you are planning a major financial transaction.
Audits are carried out in full compliance with international standards, and auditors must meet all the regulator's requirements. So you can approach the audit calmly, without the dread of a school test. It will only benefit you and your business by making it more attractive to investors and lenders. Financial risks go down and profits go up, which is exactly what you want, right?
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