An audit which reveals more than numbers

What does a company financial audit cover?

As part of a company financial audit, auditors use specialised verification techniques and methodologies. The audit covers, among other things:

• A verification of reporting packages.
• An examination of consolidated financial statements.
• An assessment of the correctness of the annual inventory.
• A review of bookkeeping, including the assessment of compliance with applicable laws.
• Control of documentation related to tax settlements and EU subsidies.

Financial audit and control – benefits

In companies such as banks, pension funds and joint-stock companies, external financial auditing is required by law. However, financial audits are also commissioned by other companies and organisations to gain insight into their financial situation. A thorough examination of financial statements brings many benefits. The audit also has a diagnostic function and allows owners to assess the potential or problems of the enterprise.

External financial auditing of companies also plays an important role in the process of making strategic business decisions. A reliable audit of financial statements is also the basis for negotiations in the event of mergers and acquisitions or attracting investors. For company management boards and owners, audits also serve a predictive function, providing information on what financial decisions can help improve the company’s situation or its further development.

Financial audit in an enterprise – stages

Individual audits vary depending on the specific nature of the company, its size and needs. The course depends on various factors. Two basic stages of a company financial audit can be distingushed.

1. The preliminary stage – it involves examining the method of recording financial documents and checking the legal basis for the business. At this stage, auditors verify the compliance of procedures with applicable laws and regulations and analyse the legal basis for the company’s operations. An audit of procedures related to the determination of tax liabilities is also carried out, which is crucial for the compliance of settlements.
2. The main stage – the auditor values assets and liabilities, examining the organisation’s financial documentation, taking into account the realism and completeness of the information. The auditing ends with the auditor delivering a report, opinion and recommendations.

Audit of financial statements – how to prepare?

In order for a certified auditor to conduct a reliable audit, it is necessary to prepare the relevant documentation. Owners should provide complete accounting records and other documents related to the company’s operations. The scope of data is limited to the area covered by the investigation, but be open to suggestions from a specialist. You usually need:

• Accounting books.
• Contracts with contractors, especially those with long-term commitments.
• The legal basis for the enterprise’s operations.
• ZUS [Polish Social Insurance Institution] documentation.
• Internal regulations.

Financial audit and review – why are they so important?

The importance of auditing is strategic, as its results form the basis for negotiations and planning for the future of the organisation. An examination of financial statements conducted by an independent, reliable auditor makes the company more credible to external stakeholders, such as banks, investors and financial institutions. An external financial audit builds trust among partners and investors, which can help close deals and initiate cooperation. The audit may also include recommendations prepared by a specialist to assist in the development of the company.

Financial audit with a Redegate Expert

In order to conduct a reliable audit, a company should use an experienced specialist. A financial auditor should have a university degree in finance and accreditation that entitles them to practise their profession. It’s worth choosing experts who have experience in their field and specialise in a specific type of audit. On the Redegate website, you’ll find auditors and accountants with experience in your industry. We operate based on individual client needs, so you can rest assured that we will meet your expectations.

Consultants tailor their activities to the specific nature of each company, which guarantees that the audit will be conducted with a full understanding of its unique needs and challenges. Thanks to our services, companies can be confident that the external financial audit will be conducted thoroughly and that the results will contribute to the growth of the organisation.