Updated at 05/07/2022 - 02:33 pm
Most enterprises conduct auditing of financial statements because they are subject to auditing and because they have to submit audited financial statements to agencies according to law. In addition, because of the busy work and the lack of opportunity to access in-depth expertise in the field of finance and accounting, business owners have not paid proper attention to the financial statements of the business. me. Therefore, the auditing of the financial statements is no longer effective as well as promoting the correct effects of the service.
So how to optimize efficiency when using financial statement audit service? Through this article, we will introduce the criteria to readers in turn.
Understand the ultimate benefits of auditing Financial statements are for businesses #
Financial statement is a method of synthesizing data from accounting books according to general economic indicators that systematically reflect the situation of assets, sources of assets of the enterprise, the situation and results of operations. production and business, the situation of cash flows and the situation of capital mobilization of the enterprise in a certain period of time. Therefore, financial statements are both an accounting method, and a form of presentation and transmission of financial accounting information to the users for making economic decisions.
For corporate managers, financial statements provide general information about the situation of assets, the source of assets, as well as the situation and business results after a period of operation, on that basis. Management will analyze and evaluate and propose solutions, timely management decisions, suitable for the development of businesses in the future.
Performing a financial statement audit helps businesses detect data inconsistent issues as well as present their financial statements before making decisions and disclosing information to third parties. Thereby, it shows the importance of having a financial report that is prepared in accordance with standards, compliance with regulations and reflects the real situation of business operations of the business.
So first of all, for the financial statement audit service to be effective, business owners need to have a certain understanding of the importance of having a financial report that complies with standards and regulations. current. Because the person who benefits from the last audited financial statements “is the owner of the business.
Prepare full documentation for auditing financial statements #
The audit phase is usually carried out in the first months of the year, this is the time when an enterprise has many things to handle at the same time such as preparing salary plan, business plan, assessment of previous year's performance, improving many different reports, preparing jobs for the Lunar New Year holiday ... Because of that, saving time working between enterprises and auditing companies is a very important factor.
To ensure a quick and effective audit, the company needs to prepare all documents according to the list provided by the auditor. Coordinate with the auditors in the process of exchanging and interpreting data in order to have agreement between the two parties when working.
Preparing documents for auditors also helps businesses review the document storage system as well as the completeness of these records over a financial year, creating peace of mind for the accountant in particular. and business in general before the start of a new financial year.
Solve problems based on nature over form #
"Appreciating nature over form" belongs to the group of characteristics to ensure the reliability of accounting information as prescribed in accounting as well as specified in tax laws to improve quality and usefulness. of accounting information provided to the subjects using the information through the financial statements of the business.
In most cases, the nature of the business and the form are one and the same. However, in reality, there are still situations where the content or nature of the transaction may differ from the form, then the accountant bases on the principle of "matter over form" to choose the method. processed and assessed according to the economic nature
Also based on this principle, when problems are discovered during the audit, the enterprise needs to understand and understand the nature of the arising operations. Thereby, the auditor exchanged, reviewed, assessed and made the appropriate adjustments and classification in terms of data to ensure that the financial statements of the business were presented honestly and reasonably.
By deciding to use the auditing service of the financial statements based on the above criteria, the enterprise will optimize the benefits from using the annual financial statement audit service and create value. increase for your business.