Preparation for the audit of annual financial statements

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An audit is an important procedure for an enterprise, therefore, as a rule, companies prepare for an audit.

As an auditor, I recommend that the following procedures be carried out in anticipation of the audit:

Firstly, it is very important to carry out procedures related to inventory before preparing for annual reporting. It is necessary to carry out and formalize the results of inventory correctly and in accordance with the law. It is necessary to correctly reflect these results in accounting.

In this case, inventory is understood as inventory kazakhstan whatsapp phone number of not only tangible assets (stocks and fixed assets), but also intangible ones. Intangible assets are inventoried on the basis of documents, and documentary checks are carried out.

It is important to take inventory of settlements with counterparties at the stage of preparation for the audit:

with customers,
with suppliers,
with contractors,
with other debtors and creditors.

These calculations are necessarily inventoried by signing reconciliation reports. With the help of a reconciliation report, the company can confirm that:

an inventory was taken, reconciliation with the counterparty was carried out,
a specific debt is confirmed by the counterparty.

Secondly, it is necessary to ensure the availability of documents confirming the balances on bank accounts. Statements must be prepared for current, foreign currency, and deposit accounts.

Thirdly, if this is relevant for the enterprise, it is necessary to reconcile settlements with leasing companies, with banks that provide loans, if the company is a borrower.