Audits and Reviews of Financial Statements
An audit of the financial statements of a company or group of companies involves procedures performed by an independent auditor that will allow him to express an opinion in the form of an audit report. In the course of it, the auditor conducts verification activities with regard to the financial statements and ascertains that neither they nor the books of account on the basis of which they were prepared contain material misstatements. The auditor also verifies that the financial statements have been prepared in accordance with applicable laws and the company’s articles of incorporation or charter. The purpose of the audit is to increase the audience’s confidence in the financial statements.
Our team of auditors ensures high quality of audits and reviews of financial statements, their efficient implementation and organization, and open communication with clients.
We conduct audits of financial statements prepared according to:
- Accounting Act
- International Financial Reporting Standards
Audit Process
Review of the Financial Statements
Reviewing the report is primarily about understanding how the financial statements were prepared. As a result of this process, the expert cannot obtain reasonable assurance that the report does not contain material misstatements. This means that a review provides a lower level of assurance to report recipients than an audit. Most often, the review concerns quarterly, semi-annual or reports prepared as of a date other than the balance sheet date. Its purpose is to ascertain whether there are any indications that make it impossible to conclude that the statements are prepared in accordance with accounting principles (policies).
Frequently Asked Questions
Planning the audit is the stage in which the auditor familiarizes himself with the company, its structure, internal processes, accounting system and financial situation. On this basis, it identifies areas of risk and creates an audit plan tailored to the specifics of the entity, so that the course of the audit is effective and reliable.
The preliminary examination takes place before the closing of the accounts. The auditor analyzes the key events that took place during the year, checks their recognition in the books and identifies areas that need special attention when closing the financial year. This stage also evaluates the effectiveness of internal controls and the compliance of adopted accounting policies with regulations.
The fundamental audit is conducted after the books for the year are closed. It includes a detailed analysis of the financial statements in accordance with national and international auditing standards. Among the things being checked are. The correctness of the valuation of assets and liabilities, the financial result, tax settlements, and the completeness of the notes and the management report.
After completing the main part of the audit, the auditor reviews all documentation and conclusions of the audit. Independent quality control of the work performed is also carried out. Finally, the client receives a summary of the results and a draft report of the study for review before it is issued.
An audit report is an official document summarizing the entire process of auditing the financial statements of a company or group. It includes an assessment of whether the report has been prepared in accordance with regulations and whether it fairly presents the company’s financial position. In some cases, a letter to the Board with additional comments and recommendations is also included.