The subject of the audit in the broadest version of the interpretation of the concept is events, processes that occur in the economy and are interesting to society and individuals. The audit objects are such that they need to be checked, but the goals can be different - study, research, assessment of reliability, correspondence of the reality of information.
In addition, such an examination makes it possible to optimize the management system and improve the regulation of activities with the help of normative acts and legal norms. A valid and properly organized audit is a great way to increase the efficiency of your workflow. In addition, the audit objects following the audit receive recommendations that will help develop the company. Such consulting services, analytical and control, are an integral part of the ongoing examination.
Theory and practice
Modern economic literature does not yet have an exact definition of what a check is, and there is no concept of “audit objects” as a single definition that is widely applicable in various regions and at various enterprises. It is rightly said that the theoretical basis has yet to be developed, expanded and deepened, but so far there are only “tops”.
If we consider the concept of audit in a rather narrow sense, then it is necessary to specify the features of the objects subject to control. The main ones will be considered in the article.
An audit of financial statements or financial activities is possible, then the event is organized in such a way as to verify financial reports in detail and either confirm the completeness of the information, or identify its shortcomings, inaccuracy. The customer as a result of such events receives a documented expert opinion on how the financial condition in his view and reality correspond to each other.
Targets and goals
Most fully, the main purpose of the audit is addressed in ISA 200, internationally applicable standards. From these documents you can find out how events are organized so that the auditor can evaluate the financial statements, analyze all important aspects, conduct work in accordance with accepted standards, and demonstrate the results to interested parties who organized the audit.
However, the main task does not have to be the only one. Usually the main purpose of the audit is accompanied by additional, somewhat less ambitious ones. These are fixed in the contract between the customer and the expert and are the conditions that determine the verification process. For example, we can talk about studying the potential of the company: the auditor should identify such reserves, due to which it is possible to increase productivity or reduce costs. The audit may have to deal with taxes in order to determine whether they are correctly charged and paid. Quite often, the inspector is assigned the task of developing such measures that stabilize the financial situation and improve it by changing the balance of expenses and income.
Accounting and audits
If you are planning an audit of financial statements, you need to understand that during the audit special attention will have to be paid to the laws of the country and the compliance of financial statements, accounting in the company with regulatory acts, and rules introduced at the state and regional levels. In addition, the audit reveals how real practices in the company comply with the accounting policies adopted by that company.During the analysis, the experts study the primary documents, registers formed in the accounting department, as well as other information reflecting business transactions.
Inspections and business activities
Often, objects of audit are aspects related to the management of a company. Then they collect the most complete information about the state of the company and analyze it comprehensively. Examination involves finding ways to reduce costs and increase working productivity, profitability, and payback. Based on the results of the audits, auditors propose measures to company executives that will help achieve better performance.
Abroad, such a working practice, as well as an audit of fixed assets, are mandatory activities regularly conducted by any more or less thoroughly working companies. An examination of an entity's business activities by experts is generally classified as an operational audit.
Personnel and Checks
Do not do in a modern enterprise and without checks related to personnel. The personnel audit object is the documentation maintained by the department responsible for personnel. In small companies, this may be the task of accounting, in large firms there is a special unit responsible for documenting relations with employees.
A personnel audit is a subtype of verification that is categorically not recommended to be carried out on its own. Any employee of the company in one way or another cooperates with the personnel department, with specialists in the selection of personnel, which means that it may be in a situation of pressure on him or in another incorrect position. This can only be avoided by inviting third-party reviewers.
Real estate: audit
Often the object of technological audit in the study of real estate owned by the enterprise is the documentation available to the company for various objects at its disposal. During the audit, experts analyze how accurate and correct the engineering, permits, administrative documentation is, whether the company's costs for maintaining the existing capital construction are correct.
In general, the audit of real estate is considered quite a challenge, as it involves working with very large amounts of data. But the correctly carried out procedure gives an idea of technical risks, which is necessary for making a decision in favor of investing money in some object or refusing to invest. An audit is also necessary in order to evaluate the budget in the future, to analyze the expenses that the maintenance and repair of the object will cause.
Mandatory Audit Object
Verification may be proactive and mandatory. The second option is regulated by law. In accordance with current regulations, it is mandatory to audit financial statements in those cases that are prescribed by law.
Reporting criteria that allow you to classify the object as those whose verification by law is inevitable:
- The form of the enterprise is OJSC.
- The organization’s activity is an area related to lending, money, financing, including banking structures, stock exchanges. Mandatory verification for investment firms, as well as non-investment funds working with charity projects, off-budget organizations.
- The authorized capital is formed with the participation of developers from abroad.
In some cases, financial indicators are also a condition that turns an audit into a mandatory event.
Prosecutor's Office and Audit
The verification of the activities of the enterprise without fail may be caused by the attention to the company of the prosecutor's office or other instances, supervisory agencies, state bodies.At the same time, it is from the instance, the judicial body, that the audit company is instructed to conduct activities to verify the activities of a particular company, and the order is actually executed by the state.
If an entrepreneur tries to evade a mandatory check, it is likely that by doing so he will provoke a fine to the company. This occurs as part of the arbitration of a lawsuit written on behalf of the prosecutor or the treasury of the country. Finally, you can get a fine from the IFTS.
Verification: monetary aspect
Among other subspecies of the audits, the rightful one deserves special attention, which focuses on the finances of the company. This is designed to control the accounting documentation associated with the calculations, as well as the company's records. During the audit, the object of financial audit is reports, the fact of their reliability. Experts identify how the company operates in accordance with applicable legal, legal acts.
During the audit, it is allowed to analyze the work of the internal control system and conduct verification of control objects configured within the organization. The data obtained in this way allow us to determine the factors that provoke erroneous, inadequate maintenance of financial statements, financial documentation, and economic activity.
International Auditing Standards
In the past few years, standards developed and applied at the international level have found their place in audit practices in Russia. Entrepreneurs realized that the best quality services are provided by those experts who apply international rules in their work. A few decades ago, this was not particularly relevant, but the situation changed dramatically when Russian companies began to work actively with foreign partners, and more importantly, with investors. Only in such a company will a businessman from abroad start investing money, which has successfully passed an audit, organized in accordance with generally accepted standards at the world level.
Not so long ago, the Ministry of Finance published a document, incorporating 18 international standards into it and recommending them for use in audit practices in the Russian Federation. All of them are officially approved and recognized as relevant, important, necessary for a high level of quality.
Important aspects
International audit standards are the requirements for the workflow of experts conducting an enterprise audit. Compliance with them allows us to achieve accurate results, work efficiency, minimal time and other resources.
The analysis carried out in accordance with international standards is more accurate, objective. The conclusion prepared in the course of such an audit will be relevant not only in Russia, it will also be accepted at enterprises in other countries.
Features of standards:
- unity of the regulatory framework;
- generally recognized qualification requirements, certification of experts;
- application of the latest analysis methodologies;
- work regulations;
- legitimacy of results;
- accurate reflection of reality in reports and conclusions.
The main advantages of the new method
The latest approach has allowed:
- attract more investment;
- create transparent business conditions in the country.
ISA have become the base on which to make the right management decisions. By ordering an audit in accordance with these standards, the manager receives a complete picture of the risks of entrepreneurial activity and methods for their elimination. But it is important to trust the work to professionals who are really good at all ISA technologies.
Russian standards
In total, about 40 standards governing audits are currently relevant in the country.Of these, two belong to the first generation, to the second - 29, and the rest - this is the third generation, that is, approved in 2010. The commission, organized under the president, is responsible for issues of approving audit standards. In addition, the government makes decisions. All the latest documents were drafted with an eye to international practices, therefore, they take into account those standards that are valid abroad, in the leading powers of the world.
It is assumed that in the near future the audit in the country will be completely similar to the ISA standards, without exception. Such innovations oblige specialists to navigate in large information databases. In recent years, translations into Russian of the full texts of international standards have been prepared. This information is most relevant for the experts themselves, but acquaintance with it is recommended for managers who want their audit to be organized according to the latest standards.
Features and differences
A smooth and gradual transition from Russian standards to international is not accidental. The practices used earlier in the country were frameworks, while the ISA provides for literally step-by-step instructions that clearly regulate the entire audit process. At the same time, ISA provides an accurate understanding of the nuances inherent in various areas. From the documentation you can find out in what sequence it is recommended to organize the actions of experts, how to link them with various standards and features of the enterprise.
When considering international standards, you need to understand that those are produced by an international accounting association of accountants. This is a non-profit organization. She also organized the translation of papers into Russian. And to this day in Russia there are certain problems with the legal status of the document and the peculiarities of owning rights to it.