Initial and financial audit of an individual entrepreneur

Primary and financial audit of an individual entrepreneur

Legal stages of the primary and financial audit of an individual entrepreneur

The primary and financial audit of an individual entrepreneur (individual entrepreneurs) is an important procedure for verifying the correctness of accounting and tax accounting. The main stages of a legal audit include:

• Legal consultation, initial and financial audit of an individual entrepreneur
• Analysis of constituent documents: verification of registration documents of an individual entrepreneur, extracts from the Unified State Register and other legal bases of activity.
• Taxation system assessment: analysis of the choice of taxation system (general or simplified) and the compliance of the selected regime.
• Audit of tax reports: analysis of submitted declarations, Unified State Register reports and other documents.
• Audit of financial transactions: verification of bank statements, cash transactions, settlements with counterparties.
• Recommendations and conclusions: preparation of a report on violations identified and recommendations for their elimination.

Conditions under which the service can be provided

Legal assistance on the topic of primary and financial audit of an individual entrepreneur can be provided under the following conditions:

• The individual entrepreneur is officially registered and has a valid status in the Unified State Register.
• Access to all financial documents and reports.
• The entrepreneur's willingness to cooperate and provide additional information at the request of the lawyer.
• The absence of judicial restrictions on the entrepreneur's activities.

Conditions under which the service cannot be provided provided

There are situations when the provision of the service is impossible:

• Incomplete or missing package of documents required for the audit.
• The individual entrepreneur is in liquidation, which makes it difficult to verify current activities.
• Lack of access to financial transactions due to non-disclosure of data by the entrepreneur.
• Existence of legal conflicts or open court cases that limit the circulation of documents.

How to figure it out on your own

The individual entrepreneur can conduct a basic audit on their own, following the following steps:

• Check documents: make sure that all reports are submitted on time. Find out the current list of documents for the initial and financial audit of an individual entrepreneur.
• Analysis of income and expenses: compare the amounts of income, expenses and taxes paid.
• Assess the correctness of taxation: check whether the taxation system corresponds to the real volume of activity.
• Check payments: make sure that taxes and fees are paid correctly and on time.

Frequently asked questions

• How much does legal advice for the initial and financial audit of an individual entrepreneur cost? Legal advice for an individual entrepreneur usually costs depending on the complexity of the issue. Financial audit for an individual entrepreneur costs depending on the volume of operations and the status of reporting. Comprehensive services can include both audit and consulting, which increases the total price. It is better to clarify the exact cost with specialists, since prices vary depending on the region and the selected company.
• How much does an initial and financial audit of an individual entrepreneur cost? An initial audit for an individual entrepreneur costs from 2,000 to 7,000 hryvnias and involves a basic review of documents and financial statements. A financial audit is more in-depth and usually costs depending on the volume of activity. In the case of large enterprises or complex structures, the price can be significantly higher. Audit companies sometimes offer discounted service packages. The final cost is determined after assessing the volume of work and risks.
• What documents are required for an initial and financial audit of an individual entrepreneur? For the initial audit, you will need the constituent documents, a certificate of registration of the individual entrepreneur and an extract from the register. It is also important to provide financial documentation, such as income and expense books, bank statements and primary accounting documents (invoices, acts). For the financial audit, you will need tax returns, reports from the Unified State Register of Companies and documentation on transactions with counterparties. Additionally, contracts, invoices, certificates of work performed, etc. may be requested. The list of documents may vary depending on the requirements of the audit firm.
• How long does it take to prepare documents for the initial and financial audit of an individual entrepreneur? Preparing documents for the initial audit takes from several days to one week, if the documents are in order. For a financial audit, the time depends on the volume of operations, and it can take from one to two weeks. If problems or a lack of documentation are identified, the preparation time can increase significantly. The process includes collecting, checking and systematizing documents. It is best to start preparing in advance to avoid delays and fines.
• How to find a lawyer on the topic of the initial and financial audit of an individual entrepreneur? You can find a lawyer through professional associations, such as the Ukrainian Bar Association or audit firms. You should also seek recommendations from familiar entrepreneurs or use platforms for finding specialists, such as LinkedIn or legal portals. Read reviews about lawyers or companies to assess their experience and reputation. It is important to check whether the specialist has experience working with individual entrepreneurs and knowledge of current legislation. Conduct a preliminary consultation to ensure the professionalism of the lawyer.

What does the cost of a lawyer's services depend on?

The initial and financial audit of an individual entrepreneur Ukraine 2024 is an important step in ensuring the financial security and legal purity of an individual entrepreneur's activities. Turning to professional lawyers allows you to avoid fines, conflicts with the tax service and focus on business development. The cost of the initial and financial audit of a sole proprietorship depends on the following factors:

• Scope of work: number of documents, transactions, audit period.
• Complexity of the activity: number of counterparties, import or export transactions.
• Extent of violations: detection of significant errors may require additional efforts to eliminate them.
• Experience and qualifications of the lawyer: specialists with a high reputation can set higher rates.