Accounting auditing and its importance

The benefits of accounting auditing are reflected in society, promoting the credibility and veracity of information, which contributes to the stability of companies and, consequently, the guarantee of jobs. Also, the tax authority benefits, because the accounting audit contributes to the correct compliance with tax laws.

Many other benefits derive from carrying out an accounting audit, for this reason not only publicly traded companies that are required for legal purposes, but other companies choose the service, as they see it as the search for transparency and improvement of their image in the market, in addition to presenting accurate and detailed information to their partners, increasing credibility.

The purpose of an accounting audit is to form a view as to whether the information presented in the financial statements, taken as a whole, reflects the financial, and economic position of the organization on a given date. The organization's management prepares the financial statements, in accordance with legal requirements and financial reporting standards. The organization's directors approve and the external auditors begin their examination, understanding the organization's activities and considering the economic and industrial problems that may affect the business during the reporting period. For each major activity listed in the financial statements, external auditors identify and assess any risks that may have a significant impact on the financial position or financial performance, as well as some of the measures (called internal controls) that the organization has implemented to mitigate those risks.

Based on the risks and controls identified, external auditors consider what management has done to ensure that the financial statements are accurate and examine supporting evidence. The external auditors then make a judgment as to whether the financial statements presented as a whole reflect a true and fair view of the financial results and position of the organization and its cash flows, and whether it complies with national and international accounting standards. Finally, the auditors prepare an audit report, which presents their opinion to the shareholders or members of the organization.

External auditors discuss the scope of the auditing work with the organization, directors, or management, and may request that additional procedures be carried out. External auditors maintain the independence of management and directors so that tests and judgments are made objectively. External auditors determine the type and extent of auditing procedures that will be performed, depending on the risks and controls they have identified.

The management of the audited company has the benefits of accounting auditing, since it receives, in addition to the opinion on the appropriateness of the financial statements, suggestions for improvements in operations and tips for obtaining updated information that adds to decision-making.

Contact TATICCA — ALLINIAL GLOBAL, which operates throughout Brazil and globally, with integrated auditing, accounting, tax, corporate finance, technology, risk advisory, business consulting and training services. For more information, visit www.taticca.com.br or email taticca@taticca.com.br and learn more. Our company has professionals with extensive experience in the market and has certified methodologies for carrying out activities.

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