What can you cook from squid: quick and tasty

Send your good work in the knowledge base is simple. Use the form below

Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.

Posted on http://www.allbest.ru//

Posted on http://www.allbest.ru//

AUTONOMOUS NON-PROFIT EDUCATIONAL

ORGANIZATION OF HIGHER EDUCATION

CENTRAL UNION OF THE RUSSIAN FEDERATION

"RUSSIAN UNIVERSITY OF COOPERATIONS"

KAZAN COOPERATIVE INSTITUTE (BRANCH)

Department of Accounting and Finance

COURSE WORK

in the discipline "Audit"

on the topic: Audit of the financial condition of the organization

Completed: 4th year student

V.V. Novozhilova

Head: Candidate of Economic Sciences, Associate Professor

Minnigaleeva V.Z.

Kazan 2019

Introduction

Audit is one of the forms of financial control, the need for which arose simultaneously with the emergence and development of commodity exchange and monetary relations. In this paper, we will consider financial analysis in the audit of the financial condition of an organization. An audit of the financial condition begins with the determination of the company's solvency. A solvent enterprise is one in which the amount of current assets (stocks, cash, accounts receivable and other assets) is greater than or equal to its external debt (liabilities). Let's analyze in detail the analysis of the company's solvency.

The relevance of the research topic lies in the fact that in the conditions of improving management and development of a market economy, the role and importance of accounting is increasing. The formation of high-quality information about the financial and economic activities of the enterprise for objective management decisions is the main goal of accounting. In modern conditions, the issues of organizing accounting and auditing acquire special relevance, since the financial stability and financial position of an enterprise largely depend on the efficiency of using its resources at the enterprise. The speed and turnover period determine the efficiency of the use of resources, the faster they turn around, the higher the speed of their turnover and the shorter the period of their turnover, therefore, the efficiency of their use increases, which has a positive effect on the financial position of the enterprise, its financial results, and, accordingly, its financial strengthening occurs. sustainability. In modern conditions, many domestic enterprises successfully use the method of marginal analysis, which makes it possible to more economically spend material, monetary, labor and other resources, helps to identify unused reserves, and to improve the efficiency of managing the pricing process. At the enterprise, the organization of management accounting, the features of building a cost accounting system and a system for managing cash flows of an enterprise, an assessment of financial results, features of the formation of an enterprise's pricing policy, an assessment of the effectiveness of its business and the formation of an internal control system that affect the development of an enterprise are of great practical importance. In modern conditions, great attention is paid to improving the efficiency of accounting information in production management, rational use of available resources, reducing the cost of production and increasing the profitability of production and sales. To carry out entrepreneurial activities, an enterprise must have resources that must be used wisely. In the process of solving problems, such economic levers as economic interest and responsibility for the efficient use of resources, as well as their analysis based on the use of progressive methods and modern accounting and audit systems, should be used. This will make it possible to timely identify and promptly eliminate negative phenomena occurring at the enterprise, in this regard, it becomes necessary and important to further study and improve the methodological and technological foundations of the organization of accounting and audit.

An audit is an independent examination of the financial statements of an enterprise based on checking compliance with the accounting procedure, compliance of economic and financial transactions with the legislation of the Republic of Kazakhstan, completeness and accuracy of reflection in the financial statements of the enterprise's activities, which ends with the drawing up of an auditor's report.

In the course work, the most important points and directions in conducting financial analysis were considered, both theoretically and practically. To ensure the survival of an enterprise in modern conditions, management personnel must, first of all, be able to realistically assess the financial condition of both their enterprise and existing potential competitors.

Financial condition is the most important characteristic of the economic activity of an enterprise. It determines the competitiveness, potential in business cooperation, assesses the extent to which the economic interests of the enterprise itself and its partners in financial and production terms are guaranteed. However, the ability to really assess the financial condition is not enough for the successful functioning of the enterprise and the achievement of its goal.

The aim of the course work is to study the methodology for auditing the financial condition of an organization.

The objectives of the course work are:

Consider the theoretical foundations and regulatory framework for regulating audit activities;

Consider the methodology for auditing the financial condition of an organization;

The subject of the course work is the content and basic procedures for auditing the financial condition of the organization.

The object of the research is the financial condition of METTEM-PRODUCTION LLC.

1. Theoretical aspects of the audit of the financial condition of the organization

1.1 Theoretical foundations and legal framework for regulating audit activities

Audit, which is one of the main elements of the market infrastructure of advanced economies, in Russia still remains outside the scope of state legal regulation, which leads to great difficulties in the activities of auditing.

The main purpose of the audit activity is to establish the reliability of the accounting (financial) statements of economic entities and the compliance of their financial and business transactions with the regulations in force in the Russian Federation.

Auditing activities (auditing services) are carried out in accordance with the Federal Law of December 30, 2008 N 307-FZ "On Auditing" (hereinafter - Law N 307-FZ), other federal laws and other regulatory legal acts that govern relations arising from implementation of audit activities.

Audit comes in two forms: external and internal.

In an internal audit, the analytical principle manifests itself much more than in an external one. This is due to the fact that enterprises and corporations in market conditions have the right to trade secrets. They are required to publish only the balance sheet and the statement of financial results, which are used primarily in external audits. The information base for internal audit is expanding, and the focus of analytical developments is changing. Internal audit, typical, as a rule, of large enterprises and corporations, is combined with their marketing activities - the management of trade and production activities, including economic analysis.

The main indicators (content, volume and forms) of the financial statements of economic entities adopted in the Russian Federation are determined by the relevant law of the Russian Federation, and before its adoption - by the regulations of the Council of Ministers - the Government of the Russian Federation and in terms of the accounting statements of banks and credit institutions - by the regulations of the Central Bank of the Russian Federation ...

An audit can be either mandatory or proactive. A mandatory audit is carried out in cases directly established by acts of legislation of the Russian Federation, an initiative audit - by decision of an economic entity.

Individuals - auditors and legal entities - audit firms, regardless of the type of ownership, including foreign ones and created jointly with foreign legal entities and individuals, have the right to engage in auditing activities.

The legal statutory audit documents include:

international auditing standards and other international documents approved by Order of the Ministry of Finance of Russia dated 09.01.2019 N 2n;

additional documents of the International Federation of Accountants (IFAC), recognized for use in Russia;

other documents regulating audit activity;

international auditing standards and other international documents approved by the Orders of the Ministry of Finance of Russia dated 10.24.2016 N 192n and dated 09.11.2016 N 207n;

federal rules (standards) of auditing that were in effect before January 1, 2018.

By the subordination of regulations and their content, one can judge about the emerging multi-level system of regulation of auditing activities in Russia (Table 1.1.1).

The first level characterizes the adoption of a fundamental document regulating auditing activities - the Law on Auditing Activities in the Russian Federation.

The second level documents regulating audit activity in the Russian Federation include:

orders of the President of the Russian Federation governing the creation and operation of the Audit Commission under the President of the Russian Federation;

Decree of the President of the Russian Federation on the timing of measures to regulate audit activities;

resolutions of the Government of the Russian Federation concerning the regulation of auditing activities;

decisions of the Audit Commission.

The third-level documents include the rules (standards) of auditing activities approved by the Audit Commission.

The fourth level includes acts of ministries and departments that establish the rules for organizing audit activities and conducting audits in relation to specific industries, organizations and on specific issues. Probably, at this level, rules (standards) of auditing activities can be developed to regulate specific issues of auditing and audit.

The fifth level - internal standards of auditing activities, developed by audit organizations on the basis of audit practice.

Documents of this level detail documents of higher levels, they should not contradict them. The content and form of such documents are improving as they become established and the market for audit services expands.

The regulation of audit activity is carried out in accordance with the civil legislation of the Russian Federation.

Table 1.1.1 - The system of normative regulation of audit activity in the Russian Federation

1.2 Audit of financial and property status

An audit of financial and property status consists in a general assessment of changes in financial indicators for the reporting period through horizontal and vertical balance sheet analysis.

At the same time, indicators of the dynamics of the balance sheet or horizontal analysis allows you to establish their absolute deviation and growth rates at the end of the year compared to the beginning.

In turn, indicators of the structure of the balance sheet or vertical analysis allows you to determine the proportion of items and sections of the balance sheet in its total result.

The analysis of the property status of an enterprise is characterized by such factors as: coefficient of depreciation, renewal, growth and retirement.

The depreciation rate characterizes the part of the value of fixed assets, which is related to the investment policy of the enterprise.

The growth rate of fixed assets characterizes the level of increase in fixed assets. An increase in the indicator indicates a positive trend.

1.3 Audit of solvency and financial soundness

Solvency is the ability of an enterprise to fulfill obligations to creditors over a certain period of time that arise as a result of its financial and economic activities.

Solvency reflects the likelihood of an enterprise to pay off short-term current liabilities with its easily realizable assets.

The means of payment should be more or exactly the same equal to the current liabilities, if the solvency ratio is greater than or equal to 1, then the company is considered solvent.

The analysis of financial ratios is based on the calculation of the proportions of different absolute indicators of the financial activity of the enterprise among themselves.

The most widespread are the following groups of financial ratios.

Coefficients for assessing the financial stability of the organization. The coefficients of the group provided allow us to identify the level of financial risk associated with the structure of sources of formation of the company's capital, and, accordingly, the degree of its financial stability in the process of future development. To carry out such an assessment in the process of financial analysis, the following main indicators are used:

a) coefficient of maneuverability (KA). It shows the extent to which the volume of assets used by the organization is formed at the expense of equity capital and to what extent it is independent of external sources of funding. The calculation of this indicator is carried out according to the formula:

on production costs in previous periods. The growing trend indicates an increase in the depreciation of fixed assets and is a negative factor.

The coefficient of renewal of fixed assets characterizes the intensity of the implementation of new fixed assets at the enterprise. The decrease in the indicator indicates that the company began to introduce less new fixed assets into production (negative trend). If the dynamics of the update rate increases, then this is a positive trend.

The retirement rate shows the rate of depreciation of fixed assets, that is, the rate of retirement of these fixed assets, which are either morally obsolete or worn out and unsuitable for further use.

It is important that the retirement rate is less than the renewal rate. This situation indicates the presence of a normal

KA = SK / K = 1P / B, (1.3.1)

where SK is the amount of the company's own capital as of a certain date, K is the total amount of the company's capital as of a specific date. The higher the value of this ratio, the more financially stable, stable and more independent from external creditors the company. The critical value of the financial stability ratio is 0.5.

b) financial risk ratio (CF). It characterizes the volume of borrowed funds per unit of equity capital, that is, the degree of the company's dependence on external sources of financing. To calculate this indicator, the following formula is used:

KF = ZK / SK = 2P + ZP + 4P + 5P / 1P, (1.3.2)

This ratio gives the most complete assessment of financial stability. The calculation of the indicator in dynamics indicates an increase in the organization's dependence on external investors and creditors, i.e., a decrease in financial stability and vice versa. The optimal value of this coefficient is less than 0.5, the critical value is 1.

c) the coefficient of maneuverability of equity capital (KM). The ratio should be high enough to provide flexibility in the use of the company's own funds:

KM = SOS / SK = 1P-1A / 1P (1.3.3)

To determine the optimal value of the coefficient of agility, it is necessary to compare this indicator for a particular company with the average indicator for the industry or competitors.

d) the coefficient of long-term financial independence (CDN). It shows the extent to which the total volume of assets used is formed at the expense of the organization's own and long-term borrowed capital, that is, it characterizes the degree of its independence from short-term borrowed funding sources. The calculation of this indicator is carried out according to the formula:

KDN = SK + ZKd / A = 1P + ZP / B (1.3.4)

2. Audit of the financial condition of the organization on the example of METTEM-PRODUCTION LLC

2.1 Brief description of the organization

LLC "METTEM-PRODUCTION" is a legal entity and is guided in its activities by the legislation, as well as the provisions of the Charter.

The organization LLC METTEM-PRODUCTION was registered on January 19, 2015 at the address 143902, Moscow region, Balashikha, st. Soviet, 42A. Company was assigned OGRN 1155001000087 and the TIN 5001006727. The company was also registered in the Pension Fund of the Russian Federation: registration number: 060001028254, as well as in the Social Insurance Fund of the Russian Federation: registration number: 500902799650091.

The main activity is the production of door locks and fittings, which include a full range of locks: mechanical, electronic and combined locks.

The company has the right to carry out other types of activities:

Manufacture of other plastic products;

Manufacture of metal doors and windows;

Manufacture of hydraulic and pneumatic power equipment;

Wholesale trade in hardware;

Wholesale trade in non-electrical household appliances;

Manufacture of armored or reinforced safes, fireproof cabinets and doors.

The governing bodies are: the director and his deputies.

The person authorized to perform management functions is: director.

According to the law "On accounting", the head is responsible for the selection of a specialist for the position of chief accountant and the organization of the accounting system, reporting, tax accounting, as well as the adoption of the Accounting Policy.

Company details: INN: 5001006727, KPP: 500101001, OKPO: 33036734, PSRN: 1155001000087, OKFS: 16 - Private property, OKOGU: 4210014 - Organizations established by legal entities or citizens, or legal entities and citizens jointly, OKOPF: 12300 - Companies with limited liability, OKTMO: 46704000001.

Analysis of the financial and property status of METTEM-PRODUCTION LLC

Analysis of the composition and structure of assets of METTEM-PRODUCTION LLC for 2018 (Appendix A).

Conclusion: the analysis of the property status of METTEM-PRODUCTION LLC showed that the value of the property by the end of the year increased by 51283.1 thousand rubles or 10.3%, which indicates the positive work of the organization. The increase in property was primarily caused by a significant increase in current assets by 13.5%, which in total amounted to 75,231 thousand rubles, but it should be noted that the value of long-term assets decreased significantly by the same 13.5%, which totaled 24,617, 9 thousand rubles.

The analysis of the placement efficiency showed that at the beginning of the year long-term assets exceeded current assets by 0.06 times, and at the end of the year by 0.2 times, which does not exceed the regulatory limits at all. This is due to the fact that the share of long-term assets in the property of the organization, both at the beginning and at the end of the year, was the largest share - 93.9% and 80.4%, respectively, and current assets were only 6.1% and 19.6% respectively.

In the composition of long-term assets at the end of the year, there was a decrease in all items in terms of amount, especially in unfinished capital construction, which confirms the organization's policy of expanding its production capacities. However, the decrease in depreciation of fixed assets indicates that the organization devoted all its efforts to expanding production and, with a lack of funds, most likely realized its fixed assets to complete the construction project. Evaluation of the effectiveness of the use of fixed assets showed a fairly low level of capital productivity. It is each ruble invested in fixed assets that gives a return in the form of manufactured products in the amount of 0.2 rubles at the beginning of the year and 0.3 rubles at the end of the year. those. for the production of products for 1 ruble, it is required to invest 4.5 and 3.9 rubles of assets in fixed assets. The continuation of such a policy in the future may lead to bankruptcy of the organization. This is confirmed by the analysis of current assets. The current assets of a solvent organization usually occupy a larger share in the assets of the company, but this is not the case in this situation. Current assets, both at the beginning of the year and at the end, occupy the smallest share in the assets of the organization, this alone already suggests that the organization does not rationally allocate assets between current and non-current assets. Accounts receivable sharply increased, the growth rate amounted to 571.2%, or in the amount of 41,010 thousand rubles. on the one hand, it indicates a delay in the organization of their payments by the buyers of the products, on the other hand, it indicates the forthcoming funds, and if the company has solvent debtors, then it is guaranteed financial well-being.

The share of funds from 0.3% to 7.8% and the growth rate was 3164.1%. On the one hand, it reflects an increase in the company's solvency, and on the other hand, it indicates the formation of free funds not used in circulation, which can lead to their depreciation in conditions of high inflation. An increase in funds contributes to an increase in the coefficient of mobility of current assets, i.e. assets actually ready for payment of urgent payments. The calculation of this coefficient showed that the changes in the composition of T.A. allowed to significantly increase the mobile part of assets by 35.3%.

Analysis of the composition and structure of sources for the formation of household assets for LLC "METTEM-PROIZVODSTO" (Appendix B).

Conclusion: the receipt, acquisition and creation of enterprise property can be carried out at the expense of its own and borrowed capital, the ratio of which determines its financial stability. The capital of an enterprise by belonging is grouped into 2 groups:

a) equity capital (SK);

b) debt capital (ZK): long-term liabilities and current liabilities.

An analysis of the sources of assets formation showed that their total value by the end of the year had significantly increased by 10.3% or by 51283.1 thousand rubles, which suggests that the enterprise by the end of the year is spending more money on financing and creating property.

The increase in the total share of liabilities was primarily caused by a sharp increase in long-term borrowed funds by 34.9%, which totaled 78,179 thousand rubles, but it should be noted that by the end of the year, the value of current liabilities decreased by 22.7% or by the amount 14,155.8 thousand rubles, which is generally assessed positively and means that the organization has enough of its own working capital to finance economic activities.

As for equity capital, there were also changes at the end of the year; it decreased by 6.1% or by the amount of 12,740.1 thousand rubles. The decrease in the amount of equity capital was due to the decrease in the item “Retained income (loss)” by these very same 6.1% and 12,740.1 thousand rubles.

The analysis of the structure of sources showed that both at the beginning and at the end of the year the company does not have financial autonomy, since the share of equity capital in the balance sheet total occupied only 42.3% at the beginning of the year, and at the end of the year this indicator decreased and amounted to 36% , this indicates that for every tenge of equity capital invested in the assets of the enterprise, 1.4 borrowed funds at the beginning of the year, and 1.8 at the end of the year, and this suggests that the enterprise is increasing dependence on its creditors.

Analysis of the solvency and financial stability of the organization METTEM-PRODUCTION LLC

financial solvency audit

Table 2.1.1 - Analysis of the current solvency of METTEM-PRODUCTION LLC for 2018

Current solvency ratio:

Кт / с = the amount of means of payment / the amount of short-term current liabilities> 1.

Kt / sH = 1423.3 / 77207.6 = 0.02

Kt / sK = 42761.2 / 57208.6 = 0.74

Kt / s = 0.74-0.02 = + 0.72

Conclusion: The analysis of solvency showed that at the beginning of the year the company was absolutely not solvent, almost had no opportunity to pay its payments, except for 2% of payments, but at the end of the year this situation changed in a positive direction and the company can pay its payments by 72%.

The reasons for the insolvency of the enterprise can be different, such as for example:

Failure to fulfill the plan for the production and sale of products;

Lack of own funds for financing as a result of non-fulfillment of the income plan;

Increase in production costs;

High percentage of taxation;

Unjustified diversion of funds into accounts receivable;

Unjustified investment in production stocks in excess of the standard need for them.

2.2 Checking the financial condition in METTEM-PRODUCTION LLC

Financial audit allows you to assess the economic efficiency of the enterprise as a whole or its individual sections and divisions. With the help of a financial audit, problem segments are identified in the company's activities, the reasons for low financial indicators, potential risks and threats are assessed, and ways to overcome them are outlined. Based on its results, management decisions are made by the management of the company and its owners, and in some cases by other interested parties.

Despite the fact that there are no strict requirements in the legislation for the procedure for conducting an audit of the economic activity of an enterprise on its own, it is better to start such an event by defining the purpose of the audit and drawing up a detailed plan.

When planning an audit of the financial condition of an organization, carried out without the involvement of external specialists, there is no need to rely entirely on auditing standards. They provide for specific approaches to verification: risk-oriented way of organizing control, determining the level of materiality, sampling method of verification, etc. Verification on its own can take place in a continuous way and does not require a calculation of materiality.

First of all, the scope of the check is determined. Based on the planned volumes, the number of specialists involved in the inspection is calculated, which are distributed among the areas subject to control; the head of the audit is appointed.

Then, the optimal period of audit activities is established, taking into account not only the duration of the control procedures, but also the time for discussing the audit results, their analysis and assessment, as well as for preparing the final document based on the audit results for presentation to the management and owners of the company.

Further, the methods of verification procedures are determined and detailed in terms of time and specialists involved. Here, the best practices and experience of auditors are already being used, as well as their work programs for individual control areas. Or they develop their own verification algorithms that take into account the specifics of the company's work. But this process is laborious and time consuming, so it is better to carry it out in advance.

When performing the procedure for checking the reliability of the balance sheet indicators, the auditor needs to pay attention to the following aspects:

a) whether the audited subject uses the sample form provided in the appendix by him independently;

b) whether the procedure for forming indicators of the balance sheet complies with the provisions of regulatory enactments;

c) whether the balance sheet was restructured for the reporting year in accordance with the provisions of regulatory enactments.

When conducting an audit, it is necessary to check whether the requirements of regulatory enactments are being met when forming the balance sheet indicators.

In sect. I of the balance sheet "Non-current assets" in an independent article highlighted the results of research and development as one of the types of intangible assets (intangible assets), emphasizing the innovative nature of the organization.

In sect. II "Inventories" they are shown without breakdown by type, and accounts receivable are disclosed as a whole, not divided into long-term and short-term.

Section III discloses additional paid-in capital without revaluation of non-current assets and shows the revaluation results separately.

Long-term liabilities (Section IV of the balance sheet) include additional indicators for provisions for contingent liabilities.

Section V of the balance sheet contains a single item "Accounts payable" without breakdown by type.

When performing an audit, the auditor should obtain sufficient evidence to ensure that:

a) the final balances of the synthetic accounting accounts of the previous reporting period are appropriately transferred to the beginning of the audited reporting period;

b) the corresponding indicators of the balance sheet at the beginning and end of the reporting period correspond to the accounting data of the synthetic and analytical accounting registers.

During the inspection at METTEM-PROIZVODSTO LLC, violations were revealed.

Cash audit

Balance sheet;

Cash flow statement

General ledger (balance sheet);

Journal-order No. 1;

Analytical statements for account 50 "Cashier";

Analytical statements for account 51 "Settlement account";

Bank statements:

Receipt and expense cash orders;

Cash books and cashier reports.

Financial (accounting) statements fairly reflect the availability and assessment of funds.

Checking the compliance of financial statements with the requirements of the current legislation

The financial (accounting) statements of the Company consist of:

a) balance sheet (form No. 1);

b) profit and loss statement (form No. 2);

c) statement of changes in equity (form No. 3);

d) cash flow statement (form No. 4);

When checking, we note the following.

When checking the profit and loss account, it was found that:

In the report for 9 months of 2018 on line "10" there should be 142,700 thousand rubles, and the report indicates - 142,910 thousand rubles; on line "020" there should be 118,050 thousand rubles, and the report indicates 118,450 thousand rubles;

In the report for 2018, line "10" should be 74,410 rubles, and the report indicates - 75,120 rubles; on line "020" there should be 66700 thousand rubles, and the report indicates 67420 thousand rubles.

The company does not draw up the results of the inventory in an appropriate manner - reconciliation statements with some counterparties have not been signed.

Financial performance audit (90, 91, 99)

The following documents were audited:

Accounting policy of the Organization;

Balance sheet;

Profits and Losses Report;

Main book;

Analytical statements for financial results accounts;

Contracts;

Source documents.

Financial (accounting) statements fairly reflect the availability and assessment of financial results.

In order to characterize the financial position of the organization, an analysis of the annual indicators of accounting and reporting was carried out, which consists in the following:

a) the current liquidity ratio is less than the minimum possible by 0.88. The ratio of provision with own working capital is less than the minimum possible by 7.67. This says that the working capital of the organization is practically not backed by free own and equated funds, but are formed entirely at the expense of borrowed sources;

b) in terms of absolute indicators of financial stability, at the beginning of the period, the financial position of the organization is stable. The organization practically does not need short-term loans. Own funds and equivalent long-term borrowed funds fully cover reserves and costs. Current assets exceed accounts payable. At the end of the period, the financial position of the organization is unstable, associated with a violation of solvency, the organization is forced to attract additional sources of coverage of reserves and costs, there is a decrease in the profitability of production. Nevertheless, there are still opportunities to restore equilibrium by replenishing the sources of own funds by reducing accounts receivable, accelerating inventory turnover;

c) margin income covers not only the fixed production, commercial and administrative expenses of the organization, but also the costs of servicing borrowed funds. This speaks of the correct choice of the financial and economic policy of the organization from the point of view of break-even work;

d) liquidity:

As of 31.12.2018:

the dynamics of the current liquidity ratio is 0.12;

the dynamics of the quick liquidity ratio is 0.05;

the dynamics of the absolute liquidity ratio is 0.04;

The liquidity indicators of the organization characterize the organization's ability to repay its current liabilities with current assets.

The following standard indicators are used to assess liquidity:

The value of the current liquidity ratio less than 2 means that the current assets are insufficient to pay off current liabilities.

The quick ratio is used to assess the organization's ability to cover current liabilities from cash and other highly liquid assets. The value of the coefficient over 0.5 can be assessed as positive.

For the absolute liquidity ratio, 0.1 can be taken as the average value.

e) solvency:

As of 31.12.2018:

1) the coefficient of restoring solvency is 0.06;

2) the coefficient of loss of solvency is 0.06;

To assess the possibility of restoring the company's solvency, the following main indicators are used:

the coefficient of recovery of solvency;

loss of solvency ratio;

The coefficient of recovery of solvency, which takes a value less than 1, calculated for a period of 6 months, indicates that the organization has no real opportunity to recover its solvency in the near future.

The coefficient of loss of solvency, taking a value less than 1, calculated for a period of 3 months, indicates that the organization has the possibility of losing solvency in the near future.

f) financial stability:

As of 31.12.2018:

1) the equity ratio is -7.57

2) the coefficient of autonomy is 0.86

3) the coefficient of maneuverability is -0.15

The funding ratio shows what proportion of assets are financed from the organization's own funds. The value of this coefficient over 0.5 indicates the financial stability of the enterprise.

For a financially stable company, the autonomy ratio, as a rule, should exceed 1.0. This indicates that the equity capital exceeds the borrowed capital.

The coefficient of maneuverability of own funds shows the ratio of own circulating assets to the amount of the company's own funds.

g) revenue and cost:

As of 31.12.2018:

1) revenue is 3,134,000;

2) the cost price is 1,937,000;

3) the share is 0.62;

Revenue and cost indicators characterize the efficiency of the organization.

When analyzing revenue, it is important to identify trends in its change, incl. associated with seasonality and other factors. To analyze the structure of the cost price and the dynamics of its change, the data of Form No. 2 of the financial statements and other necessary documents are used.

The outstripping growth of prime cost in comparison with revenue indicates a decrease in the efficiency of the organization. In this case, it is necessary to predict the development of the situation and assess the possibility of the enterprise falling into the bankruptcy zone.

h) profitability:

As of 31.12.2018:

1) return on sales 38.194;

2) return on assets 0.000;

3) return on net assets 0.000;

4) the turnover of net assets 39.67;

The performance of an organization is assessed using the following key indicators:

profitability of sales;

return on assets;

return on net assets;

return on equity.

Return on assets is one of the main indicators that characterize the efficiency of an organization. Analyzing the factors influencing this indicator, it is necessary to single out the most significant among them.

By analyzing the dynamics of changes in the return on assets ratio, it is possible to determine which of the indicators has the maximum impact on it, and to identify the reasons for the change in this indicator by examining its components. Thus, it is possible to determine the root causes of the worsening of the situation and develop measures to correct it.

i) analytical indicators:

As of 31.12.2018:

1) net assets are 4119000.00;

2) own circulating assets -598000.00;

3) variable costs 1937000.00;

4) fixed costs 0.00;

Own working capital is the difference between the volume of sources of own funds (total of 1 of section III of the balance sheet liabilities) and the actual value of fixed assets and other non-current assets (total of I of section I of the balance sheet asset).

j) profit dynamics:

As of 31.12.2018:

1) profit from sales 1197000.00;

2) operating profit 618000.00;

3) net profit 618000.00;

When assessing the profitability of an enterprise, it is important to know the profit structure. To do this, it is structured according to the following components:

sales profit;

Operating profit;

net profit.

k) bankruptcy:

1) two-factor bankruptcy model -0.50;

2) the five-factor bankruptcy model 4.58;

For the two-factor model, two indicators are selected, on which, according to E. Altman, the probability of bankruptcy depends. These include the current liquidity ratio and the financial dependence ratio.

If Z< 0, вероятность банкротства меньше 50% и далее снижается по мере уменьшения Z.

Based on the five indicators, on which the probability of bankruptcy most depends, and their weights, a five-factor forecasting model was proposed.

If Z> 2.9 - the probability is very low, that is, the organization is working stably.

2.3 Conclusions of the auditor on the audit

An auditor's report is a service document for audited persons keeping accounting records. It is compiled according to certain rules and regulations. The auditor's report contains all the necessary information about the correctness of the financial statements of the auditee. The concept of "reliability" in the auditor's report is the degree of accuracy of the information in the financial statements on the financial and property state of affairs of the audited persons (objects), as well as on the effectiveness of their economic functioning in general.

The conclusion helps to evaluate the process of economic activity at the time of the audit and suggest the necessary conclusions for taking measures for its further regulation. In the auditor's report, the auditor fixes the maximum allowable size of discrepancies for the audited entity (object), on the basis of which a further detailed analysis of the work is performed.

As a result of the audit, we found violations of the current procedure for drawing up financial (accounting) statements and accounting.

Based on the results of the audit, it can be concluded that the financial and economic activities of the Organization were carried out with certain deviations from the current legislation of the Russian Federation. The degree of influence of these deviations does not give grounds to call into question the reliability of the presented reports.

Auditor's opinion

Analysis of documents and professional communication with accounting personnel during the period of the audit showed that the level of competence of employees corresponds to the nature and volume of the financial and economic activities of the Organization.

In the auditor's opinion, the financial (accounting) statements of METTEM-PRODUCTION LLC reliably reflect, in all material respects, the financial position as of December 31, 2018 and the results of its financial and economic activities for the period from January 1 to December 31, 2018 inclusive in accordance with the requirements of the legislation of the Russian Federation in terms of the preparation of financial (accounting) statements.

Conclusion

An audit provides a basis for analyzing the financial and economic activities of a business, which allows you to identify the strengths and weaknesses of the latter, make informed decisions, and prevent administrative penalties. An audit can be compared to a medical examination or technical diagnostics of a car. A mature leader fully understands the need for audits and, as a rule, does not postpone them on the back burner.

The main purpose of the audit is to provide users with the reporting of enterprises with confidence that these reports have been reviewed by qualified specialists, and their reliability has been confirmed in all material respects. This makes it possible to use the information available in the reporting with sufficient confidence to make decisions in the process of doing business.

The basic principles of auditing include: independence and objectivity during inspections; confidentiality, professionalism, competence and integrity of the auditor; use of methods of statistics and economic analysis; application of new information technologies; the ability to make rational decisions on audit data; benevolence and loyalty to customers; the responsibility of the auditor for the consequences of his recommendations and conclusions based on the results of audits; contributing to the growth of the credibility of the auditing profession.

The main regulatory document governing the conduct of a statutory audit in the Russian Federation is 307-FZ. Auditing activities are also subject to federal rules (standards) approved by orders of the Ministry of Finance and decrees of the Government of the Russian Federation, documents approved by the Council on Auditing.

Summing up, it should be noted that for the normal functioning of the enterprise in their practice should use a variety of techniques and methods of auditing. Thus, they will be able to avoid problems when checking an enterprise by control and audit services, reduce the number of errors in accounting and financial reporting, provide internal and external users with truthful, complete and reliable information about the activities of the enterprise, preserving (or) giving it an impeccable reputation.

Analyzing the activities of the company LLC METTEM-PRODUCTION and, taking into account the regulatory framework of auditing, it is necessary, I think, to make the following proposals:

introduce the position of an internal auditor at the enterprise;

make amendments to the accounting policy of the enterprise regarding the conduct of audits;

together with an external audit, conduct an audit at the enterprise with the involvement of its own (internal) auditors.

Subject to the above proposals, METTEM-PRODUCTION LLC will be able to maintain accounting records and submit reports to regulatory authorities without any problems, show the best results of its activities to attract national and foreign investors.

During the audit, the correctness of filling out the reporting forms and maintaining the interconnection of reporting indicators was checked. For this, methods of obtaining audit evidence were used, such as oral questioning of accounting employees, tracking, arithmetic calculation, document checking.

During the crisis, many organizations in the market for goods and services simply disappear, since they could not cope with the inflation rate and, with many other factors, it should be noted that METTEM-PRODUCTION LLC at the end of 2018 improved its main indicators, which means develops and strengthens its position among competitors.

List of sources used

Civil Code of the Russian Federation (Adopted by the State Duma on October 21, 1994) (taking into account the changes introduced by Federal Laws of 05.17.2007 N 82-FZ (as amended on 29.12.2010), of 24.07.2008 N 161-FZ, of 13.10. 2008 N 173-FZ (as revised on 21.07.2014), dated 18.07.2009 N 181-FZ, Resolutions of the Constitutional Court of the Russian Federation dated 27.06.2012 N 15-P, dated 22.06.2017 N 16-P) [Electronic resource] / / Reference and legal system "ConsultantPlus". Access mode: http://www.consultant.ru/

Tax Code of the Russian Federation (Adopted by the State Duma on July 16, 1998; Approved by the Federation Council on July 17, 1998) (as amended by Federal Laws of March 30, 1999 N 51-FZ, of July 31, 1998 N 147-FZ (revised 09.07. 2002), Determination of the Constitutional Court of the Russian Federation of 06.12.2001 N 257-O, Resolution of the Constitutional Court of the Russian Federation of 17.03.2009 N 5-P) [Electronic resource] // Reference and legal system "ConsultantPlus". Access mode: http://www.consultant.ru/

Federal Law of 06.12.2011 N 402-FZ (as amended on 28.11.2018) "On accounting" [Electronic resource] // Reference and legal system "ConsultantPlus". Access mode: http://www.consultant.ru/

Federal Law of 12/30/2008 N 307-FZ (as amended on 04/23/2018) "On audit activity" [Electronic resource] // Reference and legal system "ConsultantPlus". Access mode: http://www.consultant.ru/

Federal Law of 28.12.2010 N 400-FZ (last edition) "On Amending Article 5 of the Federal Law" On Auditing Activity "[Electronic resource] // Reference and legal system" ConsultantPlus ". Access mode: http: // www .consultant.ru /

Order of the Ministry of Finance of Russia dated 09.01.2019 N 2n "On the introduction of international audit standards in the territory of the Russian Federation and on recognizing as invalid some orders of the Ministry of Finance of the Russian Federation" (Registered in the Ministry of Justice of Russia on 31.01.2019 N 53639) [Electronic resource] // Reference and legal system "ConsultantPlus". Access mode: http://www.consultant.ru/

Order of the Ministry of Finance of Russia dated July 29, 1998 N 34n (as amended on 04/11/2018) "On approval of the Regulations for the maintenance of accounting and financial reporting in the Russian Federation" (Registered in the Ministry of Justice of Russia on August 27, 1998 N 1598) [Electronic resource] // Reference - legal system "ConsultantPlus". Access mode: http://www.consultant.ru/

Order of the Ministry of Finance of Russia dated 09.03.2017 N 33n "On the determination of the types of audit services, including the list of services related to the audit" (Registered in the Ministry of Justice of Russia on 05/10/2017 N 46643) [Electronic resource] // Reference and legal system "ConsultantPlus". Access mode: http://www.consultant.ru/

Ageeva, O. A. International financial reporting standards [Text]: tutorial / O. A. Ageeva. - M .: Accounting, 2018 .-- 464 p.

Dmitrieva, I.M. Accounting and audit [Text]: tutorial / IM. Dmitrieva. - M .: Yurayt, 2014 .-- 306 p.

Dun, Irina Accounting and audit in autonomous institutions [Text]: tutorial / Irina Dun. - M .: LAP Lambert Academic Publishing, 2017 .-- 240 p.

Eremina, I. Yu. Labor of personnel: audit of personnel, duality and continuity of their training [Text]: textbook / I.Yu. Eremina, F.A. Dzhioeva, N.V. Pogrebnyak. - M .: LAP Lambert Academic Publishing, 2016 .-- 216 p.

Kazakova, N.A. Audit [Electronic resource]: textbook for academic baccalaureate / N. A. Kazakova. - M .: Yurayt, 2017 .-- 387 p. - Access mode: https://www.biblio-online.ru/bcode/399543 EBS Yurayt.

Kisilevich, T. I. Tax audit in construction [Text]: textbook / T.I. Kisilevich, E.N. Khachemizova. - M .: Finance and statistics, 2018 .-- 208 p.

Lebedeva, E. M. Audit [Text]: textbook / E.М. Lebedev. - M .: Academia, 2016 .-- 176 p.

Lytneva, N. A. Accounting, analysis and audit of foreign economic activity of commercial organizations [Text]: textbook / N.А. Lytneva, E.A. Bobrova, T.V. Fedorov. - M .: Forum, 2017 .-- 320 p.

Marenkov, N.L. International standards of accounting, financial reporting and audit in Russian firms [Text]: textbook / N.L. Marenkov. - M .: RGGU, 2016 .-- 731 p.

Pavlova, L. N. Operations with corporate securities. Practical guidance on management, accounting and auditing [Text]: textbook / L.N. Pavlova. - M .: Accounting Bulletin, 2016 .-- 400 p.

Sannikova, MO Fundamentals of audit [Text]: a textbook for students of higher educational institutions / MO Sannikova. - S .: Bukva, 2016 .-- 301 p.

Sitnov, A. International auditing standards [Text]: textbook for university students / Sitnov A. - M .: UNITI, 2018. - 175 p.

Terekhov, A.A. Audit: development prospects [Text]: textbook / А.А. Terekhov. - L .:, 2018 .-- 560 p.

Sheremet, A. D., Suyts V. P. Audit [Text]: textbook / A. D. Sheremet, V.P. Suits. - M .: INFRA-M, 2017 .-- 375 p.

Appendix A

Similar documents

Theoretical foundations and regulatory framework for the regulation of audit activities. Audit of financial and property status, solvency and financial stability, analysis of balance sheet liquidity. Financial and property status of Prima LLP.

term paper, added 03/25/2010


Organization, planning and regulatory framework for the regulation of audit activities. The sequence of the audit and the presentation of the results. Methodology for auditing the financial condition of an enterprise. Express audit of balance and solvency.

term paper, added 01/12/2009


The main indicators of financial performance and features of the organization of the economic functioning of the enterprise, the methodology of financial audit. Preliminary balance sheet review, property analysis, financial stability, solvency (liquidity).

term paper, added 02/27/2011


The essence, meaning, role, types of financial analysis in modern conditions. Analysis of property status, structure of assets and liabilities, liquidity and solvency in absolute and relative terms of OOO Confectioner. Financial stability analysis.

term paper, added 05/11/2016


Stages, tasks and results of the analysis of the financial condition of the enterprise: assessment of the property status and capital structure, assessment of business activity, financial stability, analysis of the liquidity of the balance sheet and the solvency of the enterprise.

test, added 11/08/2009


Accounting financial statements as an information base for analysis, a methodological basis for assessing the financial condition of an organization. Assessment of the organization's property and sources of its formation, liquidity and solvency, financial stability.

thesis, added 07/16/2010


Capital investment operations audit. Control over the correctness of accounting for repair costs. Accounting and auditing of settlements with suppliers and contractors. Analysis of the financial condition of the company based on its financial statements.

test, added 10/17/2009


The essence of auditing and auditing activities. Audit as an independent organizational and legal form of financial control. Systemic mechanism of economic and normative regulation of audit activity in Russia. Professional ethics of auditors.

term paper, added 12/13/2011


Analysis of the financial condition and solvency of the organization: sources of information, purpose, indicators of financial condition and solvency. Analysis of the efficiency of the use of labor resources, calculation of the basic costs of production.

test, added 10/08/2009


The purpose and objectives of the audit of accounting objects and audit services to determine the financial condition, drawing up its program and the main stages. Rules for the preparation of audit materials and services, the procedure for drawing up an expert opinion on the audit.

1.2. FINANCIAL ANALYSIS AS A TYPE OF SERVICES ASSOCIATED WITH AN AUDIT

Accounting in Russia is developing in accordance with the most common international standards. In international practice, the definition of accounting includes bookkeeping, production accounting, financial accounting, internal audit, tax accounting. Therefore, the audit activity, along with audits, includes the work accompanying the audit. - survey services, tax services, consulting services for the administration, financial analysis (analysis of financial statements).

The share of audit-related services in the practice of leading audit firms in Western countries is up to 50% of all services provided.

The standards for the provision of related services as part of the International Standards for Auditing (IAG / RS) of the International Committee on Auditing Practice determine the content and objectives of the work. The standard for the analysis of financial statements is separated into a separate section, which deals with the statutory audit procedures when performing this analysis. This standard relates to the analysis of financial statements, but it can be applied to the analysis of other financial information.

Before starting the financial analysis, the client and the auditor agree on:

the purpose of the service to be performed;

analysis scale:

a sample of the report to be submitted;

a provision on under what circumstances the auditor's report cannot be formulated.

The auditor should follow the scoping procedures:

get information about the nature of the company's (enterprise) activities;

conduct a survey in order to collect information on the classification and reflection of the conclusions of the financial statements, compare the conclusions and results of the statements with the expected results;

compare financial statements with statements for previous periods;

study the ratio of various elements of financial statements and the impact of these elements on the bottom line.

In fulfilling the obligation, the auditor can and should use specific analytical procedures. The set of such specific procedures, combined in a certain logical sequence, is called a methodology for conducting financial analysis.

In addition, the auditor should be informed of events that occurred after the date of the financial statements that resulted in a material change in the results reported in the financial statements.

The conclusions of the analysis should be documented, with a reference to the methods used, with the help of which the estimated results were obtained. If the results of the financial analysis conducted by the auditor raise doubts about the completeness and accuracy of the financial statements, then he argues the need to change the information base of the analysis, and if such a change is impossible, does not guarantee the reliability of the analytical conclusions.

The auditor's analysis report is prepared in accordance with the requirements of International Standards IAG 21, IAG 24, IAG / RS 2.

2. OBJECTIVES AND METHODS OF FINANCIAL ANALYSIS

Analysis as a category that characterizes the method of researching a phenomenon is widely used both in science and in practice. Financial analysis is a method of understanding the financial mechanism of an enterprise, the processes of formation and use of financial resources for its operational and investment activities.

The main goal of financial analysis is to identify significant relationships and characteristics of the financial condition of the enterprise in order to develop an optimal management solution. This goal is achieved by obtaining a small number of key (most informative) parameters that give an objective and accurate picture of the financial condition of the enterprise, its profits and losses, changes in the composition of assets and liabilities, settlements with debtors and creditors. In this case, the analyst and the manager (manager) may be interested in both the current financial condition of the enterprise and its projection for the near future or a more distant period.

The purpose of the analysis takes the form of a specific management task assigned to the auditor. The analytical task specifies the purpose of the analysis, taking into account the organizational, informational, technical and methodological capabilities of its implementation. An example of analytical tasks might be:

balance sheet liquidity analysis;

analysis of financial condition and solvency;

analysis of the dynamics and structure of balance sheet items;

factor analysis of profit;

analysis of optimization of profit, production and costs;

comprehensive analysis of the financial and economic activities of the enterprise, etc.

When conducting financial analysis, knowledge of such related economic disciplines as accounting, finance and credit, economic theory, and business law is used. The auditor conducting financial analysis, on the basis of this knowledge, reconstructs the activity of the object of analysis according to the data of the initial information, i.e. repeats the work of an accountant, but in the reverse order - from generalization and classification of initial data in the form of financial statements to understanding the essence of a particular business transaction. An analytical reading of the initial data is required based on the goals of management and the objectives of the analysis.

The main principle of analytical reading of financial statements is the deductive method, i.e. the transition from the general to the particular, which must be applied repeatedly in the course of the analysis. In the course of such an analysis, the historical and logical sequence of economic facts and events is reproduced, the direction and strength of their influence on the results of activities are determined.

Analytical information will be useless for the purposes of management (managers) if other necessary principles of analysis are not observed: relevance, reliability, comparability, materiality.

Relevance and credibility are two basic qualities that determine the usefulness of analytical information for decision-making. Information is relevant if it is capable of confirming or refuting the alleged management decision. In other words, the financial analysis should have an impact on this decision. The value of analysis lies in timeliness, which is an important aspect of relevance and reliability. Information is reliable if it meets the requirements of truthfulness, completeness and neutrality.

Comparability is as important as relevance and reliability. Comparison is one of the main techniques of financial analysis, used to increase the degree of usefulness of analytical conclusions when making management decisions. The alternative choice depends on the results of comparing data with previous periods, data from other companies, forecast data or a plan,

Materiality characterizes the level of value of analytical calculations for solving an analytical problem. Materiality depends on a combination of many factors, including the degree of the auditor's proficiency in the analysis technology. An experienced analyst makes extensive use of additional analytical techniques - external information, indirect evidence (for example, the relationship between the enterprise and partners), information on technical preparation of production, expert information, etc. In particular, financial reports do not contain information about the personnel of the enterprise, the nature of R&D, marketing activities , although this information can help the auditor in solving the analytical problem. However, the main factor of materiality is the ability to analyze in detail the financial statements of an enterprise as the main information base of the analysis. Such information can be obtained as a result of a systematic study of financial statements using a scientifically sound methodology.

Before conducting the analysis directly, the auditor first of all determines its purpose and objectives. He then develops an analysis program that defines:

methods and techniques of analysis, optimal to achieve the goals and objectives;

information base of analysis;

a criterion for making a decision in the event of extraordinary fluctuations.

When conducting financial analysis, the following main methods of researching financial statements are used:

horizontal (time) analysis - comparison of each reporting item with the previous period;

vertical (structural) analysis - identifying the impact of each reporting item on the result as a whole, i.e. determination of the structure of the final financial indicators;

comparative (spatial) analysis - comparison of summary indicators of the enterprise's reporting with similar indicators of competitors, inter-enterprise analysis of enterprises in the industry, on-farm analysis of structural divisions of the enterprise;

trend analysis - trend determination, i.e. the main trend of the indicator dynamics, free from random influences and individual characteristics of individual periods by comparing each reporting item with a number of previous periods. With the help of the trend, the possible values ​​of the indicator are predicted in the future period, and therefore, a prospective analysis is carried out;

factor analysis - analysis of the influence of individual factors (causes) on the effective indicator using deterministic or stochastic research methods. Factor analysis can be direct (analysis itself), in which the effective indicator is decomposed into its constituent elements, and inverse (synthesis), in which the effective indicator is formed for individual elements;

analysis of relative indicators (ratios) - a method of analysis based on calculating the relationship between individual items of financial statements in order to determine the relationship of indicators.

In addition to the listed basic analytical methods for studying financial statements, there are scientifically based methods of financial analysis:

traditional - collation, comparison, grouping;

economic and mathematical - graphical, matrix methods, linear programming method, correlation and regression analysis method, set theory method, etc .;

Indicators: Changes in some indicators may be the result of changes in others. For example, a decline in profitability is often associated with a worsening asset turnover. Depending on the goals set, the financial analysis of the state of the enterprise can be supplemented with other studies (marketing, technological). Basic methods of analysis: horizontal (longitudinal) or analysis ...

Checks. Financial assessments of financial statements in a concise and concentrated form are needed by the auditor as guidelines. They serve as a hint for choosing the right decision in the audit process. The auditor's awareness as a result of the conducted financial analysis gives him confidence in his actions, helps to plan the audit correctly, to identify weaknesses in the system ...

The work carries out an economic analysis of the enterprise from the point of view of internal use with the aim of operational and efficient management. Chapter 2. Analysis of the financial condition of the enterprise LLC "Masternet Ural Group" and its financial stability 2.1 LLC "Masternet Ural Group" as an object of financial analysis The main activity of the enterprise is construction, but the enterprise also ...

The definition of financial audit means a comprehensive check of the economic condition of an organization, as well as an assessment of the prospects for its development.

In modern domestic practice, financial audit is often viewed as a very narrow concept, usually including only the classical audit of financial statements. Also close to financial audit is the concept of investment audit - an expert opinion on the targeted and most effective use of the company's investment resources.

The purpose of such an independent audit is to assess the correctness of accounting in the audited company, as well as to verify the reliability of the financial statements. In addition, during the audit of the financial and economic activities of the organization, financial risks (tax, legal, administrative, economic) are identified and recommendations for their reduction are issued.

The strategic objective of the audit is to analyze the profitability and efficiency of the company in the light of its main, financial and investment activities. This task is achieved through a detailed analysis of the information that is presented in the financial statements of the organization.

A general audit of the financial sphere of activity is carried out either at the initiative of the owner of the company, or for the purpose of annually checking the accounts of the organization, the need for which is enshrined in law.

Who is this service for?

Financial audit services are primarily needed by the heads of enterprises and organizations who seek to objectively assess the performance of their financial structures.

An audit of the financial condition will give an independent opinion on the company's solvency and profitability, its capital turnover, etc. Based on the results of the audit, the manager will be able to receive a full report on all factors of interest to him. In addition, the auditor's report must contain recommendations for eliminating the deficiencies found and optimizing the financial activities of the organization.

According to experts, an independent financial audit is an excellent opportunity to objectively look at the company's activities. An auditor firm is designed to help the business owner or other interested parties in an unbiased assessment of the overall financial performance of the business. In this case, this type of audit is the main tool and an integral element of general financial analysis.

When will it be not only useful, but also necessary to conduct a financial audit?

• Such independent reviews should be conducted periodically to superficially assess the competence and performance of full-time accountants in terms of proper accounting.
• A financial audit of a company is carried out in the event of a change in the CFO, chief accountant or director of the company.
• An audit of the financial condition of a company is performed to check the economic reporting before submitting it to government agencies and the statistics department.

What does a financial audit involve?

• a comprehensive assessment of the financial condition of the enterprise;
• study of the efficiency of the company, as well as the financial results of its activities;
• detailed analysis of the financial and economic strategies used;
• research of the stability, solvency and liquidity of the enterprise;
• assessment of the prospects for increasing business activity, as well as the effectiveness of the organization's economic activities;
• recommendations for optimizing the financial strategy for a particular company.

What should a firm committed to a financial audit do?

• conduct a complete study of the structure of assets and liabilities of the audited company, income and expenses for each type and separately for each type of activity;
• consider financial ratios, valuation and recognition frameworks for liabilities and assets,
• to study the influence of individual accounting policy factors, including notional values ​​and estimates;
• identify and comment on the elements that underlie the reported business results of the company in recent years and have a significant impact on its financial results;
• to study the nature of the movement of funds in recent years, as well as those factors that have a significant impact on it;
• comment on the forecasts of the company's management regarding the prospects for the development of the company's commercial activities;
• pay special attention to correlating these forecasts with the current sales volume and the general financial condition of the company.

What are the key metrics that play an important role in a financial audit?

• Net income and net assets
• Indicator of turnover and profitability of the company
• Accounting for expenses and income, as well as the reliability of explanations to them
• All fixed assets of the enterprise, material and commodity stocks
• Accounts receivable and financial investments of the company
• The presence of accounts payable on loans, credits or settlements with the company's suppliers
• Unrecorded liabilities
• The correctness of the organization's balance sheet
• Transactions with related parties
• Timeliness and reliability of the inventory of assets and liabilities of the enterprise, etc.
  

Which organizations require periodic mandatory independent audits?

Compulsory financial audit includes:

• Enterprises that are built in accordance with the organizational and legal form of an open joint stock company
• Companies that carry out credit or insurance activities
• Mutual Insurance Societies
• Commodity or stock exchanges
• Investment state off-budget funds
• Funds, the source of the formation of the financial base of which are voluntary contributions from legal entities and individuals
• Organizations that are unitary state or municipal enterprises, whose activities are based on the right of economic management
• Enterprises in respect of which a periodic mandatory financial audit and a report to regulatory authorities are provided for by law
• Companies that issue securities
• Organizations privatizing communal or state property
  

What is the benefit of conducting an independent audit of a company's financial activities?

Based on the results of the financial audit, the customer is provided with:

1. Auditor's report, which contains officially confirmed data on the reliability of the financial or accounting statements of the audited company provided for analysis. In addition, the auditor's report should include a reliable analysis of the property status and performance of the organization for the period under study.
2. A written report that contains full information about all violations and shortcomings found as a result of the financial audit. All found errors and violations must be classified in full accordance with the established rules of the current legislation. In addition to the list of identified shortcomings, this document should also contain recommendations for eliminating financial errors.
3. A separate document drawn up following the results of a financial audit should contain recommendations aimed at improving the financial condition of the enterprise, as well as increasing the efficiency of the company's financial management system.

In the modern business world, the opinion of an independent auditor on the reliability of accounting and financial statements is the best confirmation of the reliability and honesty of the company. In addition, an audit report will be required to confirm the image and business reputation of the company when concluding contracts and agreements with partners or various credit institutions.

When applying for a financial audit to our company, you guarantee yourself the services of top-class specialists, a quick and professional audit, as well as the most complete and objective information in the final conclusion.

Recently, the demand for economic and financial analysis services has increased significantly. This is due to the fact that enterprises that have been operating for a sufficient time in new economic conditions want to understand their financial condition, outline ways out of the crisis, determine which type of products (works, services) brings the greatest income (losses), etc. ... Some businesses are in dire straits and teetering on the brink of bankruptcy. Employees of economic services of enterprises do not know the methods of analyzing the financial condition in a market economy, do not have experience in drawing up business plans.

Financial analysis involves a comprehensive assessment of the organization's activities based on the use of a number of indicators. Such an assessment includes the selection of the most significant indicators for a particular organization or a group of organizations, calculated on the basis of accounting reporting data and analysis of their dynamics, ranking according to the degree of significance, studying the effect on the value of a comprehensive analysis.

Financial analysis allows you to judge the effectiveness and reliability of the organization and its management team. As part of the financial analysis, a "horizontal" comparison of balance sheet items and calculated indicators for several reporting periods is carried out, as well as a "vertical" comparison of the activities of this organization with another.

Financial analysis can be viewed as a way of accumulating and using accounting data, the purposes of which are:

An objective assessment of the financial condition, financial results, efficiency and business activity of the enterprise;

Identification of factors and causes of the achieved state and the results obtained;

Preparation and justification of the adopted management decisions in the field of finance;

Identification and mobilization of reserves for improving the financial condition and financial results, increasing the efficiency of all economic activities.

Financial analysis is used in auditing in two ways.

First, as a method of the financial mechanism of an enterprise, the processes of formation and use for its operational and investment activities. The result of the analysis is an assessment of the financial well-being of the enterprise, the state of its property, assets and liabilities of the balance sheet, the rate of turnover of all capital and its individual parts, the profitability of the funds used.

Acquaintance with the balance sheet of the enterprise is a mandatory step in the work of the auditor, both at the stage of concluding a contract and during the audit itself. Financial assessments of financial statements in a concise and concentrated form are needed by the auditor as guidelines. They serve as a hint for choosing the right decision in the audit process. The auditor's awareness as a result of the conducted financial analysis gives him confidence in his actions, helps to plan the audit correctly, and to identify weaknesses in the accounting system.

Analytical procedures of the auditor in the course of preliminary acquaintance with the client's activities are reduced to the following actions:

· Comparison of current data with standard values;

· Comparison of financial ratios with non-financial indicators;

· Comparison of current data with data of previous periods;

· Comparison of the current data with the data of the plan and forecasts;

· Comparison of the current data of the enterprise with the average general economic and industry data.

The purpose of using analytical procedures is to identify atypical situations in the activities of the enterprise and in its reporting.

Secondly, financial analysis is viewed as a type of auditor's services. The administration of the company, founders, owners and shareholders need complete and detailed information about the financial position of the company at the end of the reporting period, the income received and its use.

Audit clients are interested not only in the current financial condition of their enterprise, but also in the growth prospects, the expected consequences of the decisions made.

The main goal of financial analysis is to obtain several key parameters that give an objective and accurate picture of the financial condition of the enterprise, its profits and losses, changes in the structure of assets and liabilities, in settlements with debtors and creditors.

In this case, the manager may be interested in both the current financial condition of the enterprise, and its immediate and distant prospects.

The objectives of the analysis are achieved as a result of solving certain interrelated analytical problems. An analytical task is the specification of the objectives of the analysis, taking into account the organizational, technical and methodological capabilities of the analysis. The main factor in solving an analytical problem is the volume and quality of the initial information. It should be borne in mind that the periodic accounting or financial statements of an enterprise are only raw information prepared in the course of performing accounting procedures at the enterprise.