Accounting audit

Accounting Audit

Legal Stages of an Accounting Audit

Accounting audit is a service that involves an independent review of a company's financial statements to confirm their accuracy and compliance with applicable law. The legal stages of an audit include:

• Legal advice on accounting audits
• Task analysis: determining the objectives of the audit, the scope of work and the deadlines.
• Conclusion of a contract: between the customer and the audit company, which clearly stipulates the responsibilities of the parties.
• Preparation: collecting primary documentation, accounting registers and other reporting to be audited.
• Audit review: analyzing financial data, testing internal controls and checking compliance with accounting standards.
• Report preparation: the auditor provides a conclusion that includes the results of the review, identified errors and recommendations.

Under what conditions can the service be provided?

The audit can be provided under the following conditions:

• Availability of necessary documentation: the customer must provide all necessary accounting documents and reporting.
• Transparency of financial transactions: absence of conscious attempts to hide or distort data.
• Conclusion of the contract: clear formulation of the terms, scope of services and responsibilities of the parties.
• Cooperation with the auditor: ensuring access to information and prompt response to auditor requests.

Under what conditions can the service not be provided? provided

Legal assistance on the topic of accounting audit cannot be provided if:

• Refusal to provide documents: if the client is not ready or cannot provide access to the reporting.
• Illegal activity: the presence of conscious attempts to falsify data.
• Conflict of interest: if the audit company has a financial interest in the results of the audit.
• Insufficient time: if the client requires an audit to be conducted in an unrealistically short period of time.

How to figure it out on your own

You can figure out the accounting audit process yourself using the following steps:

• Legal Awareness: Learn the main regulatory acts governing accounting and auditing. Learn the current list of documents for an accounting audit.
• Using methodological recommendations: use official manuals or accounting literature.
• Checking documentation: pay attention to the correctness of the preparation of accounting statements and internal documents.
• Consultations: if necessary, consult an accountant or auditor.

Frequently asked questions

• How much does legal advice on an accounting audit cost? — The cost of legal advice on an accounting audit depends on the region, the complexity of the issue, and the lawyer's experience. Some lawyers offer a fixed fee for consultation. In large law firms, the cost may be higher due to the company's reputation. Often, a preliminary consultation is free of charge to assess the scope of work.
• How much does an accounting audit cost? The cost of an accounting audit depends on the volume of documentation, the size of the enterprise and the level of complexity of the work. Additional services, such as the preparation of recommendations or consultations, may be paid separately. The final amount is determined after the auditor assesses the scope of work.
• What documents are required for an accounting audit? An accounting audit usually requires financial statements (balance sheet, profit and loss statement), accounting registers and turnover and balance information. Primary documentation is also requested, including invoices, delivery notes, contracts and bank statements. Documents on the company's accounting policy are necessarily provided. Depending on the specifics of the business, personnel documents and reconciliation acts with counterparties may be required. The auditor usually provides an exact list of the necessary documentation after a preliminary consultation.
• How to find a lawyer on the topic of accounting audit? It is most convenient to search for a lawyer through specialized platforms or websites.
• How long does it take to prepare documents for an accounting audit? The time it takes to prepare documents for an audit depends on the amount of information, the systematization of documentation, and the availability of resources in the company. On average, it takes from 3 to 10 business days for a small or medium-sized business. Large companies can spend up to several weeks if the documents have not been properly organized. Usually, the process is accelerated by prior consultation with the auditor. If the documents are not ready, the auditor can offer services for their systematization for a fee.

What determines the cost of a lawyer's services

Accounting audit Ukraine 2024 is not only a legal requirement, but also an important tool for ensuring transparency and efficiency of financial management. Timely appeal to an auditor will help avoid many risks and ensure the stable development of your business. The cost of an accounting audit depends on:

• Scope of work: the number and complexity of documents to be reviewed.
• Business complexity: the specifics of the industry, the number of business transactions.
• Urgency: a service performed in a short time may cost more.
• Auditor's qualification level: experienced auditors and large audit firms usually have higher rates.
• Region: the cost of services may vary depending on the location of the company.