We start at the beginning: what is an audit? The audit consists of the review, by an accounting expert, of the accounting of a company in order to accredit, before third parties, the reasonableness of the veracity and reliability of its content.
The most common audit is that which is carried out, obligatorily, on the annual accounts of the company and concludes, after the review by the audit firm, with a report that manifests itself on said accounts, reasonably picking up the faithful image of society. Contrary to what many people think, the objective of an audit is not to detect frauds – although in the course of the work, they can be evidenced – but rather its intention is to give social agents information about the correctness of the accounting information that the entity Revised is posting.
Types of audit
The most common audit is the mandatory audit of the annual accounts of a company. That is to say, it is that mercantile companies are obliged to carry out, in accordance with the Law.
The audit of consolidated annual accounts is also mandatory when the parameters indicated for the individual ones are exceeded, in this case, multiplied by four.
However, the audit of the annual accounts can also be done voluntarily. Many are the companies that do so as an exercise of transparency before third parties (investors, partners, banks, suppliers, etc.).
There are also other works carried out by auditors who, not being properly audits, need to use audit procedures and are regulated by regulations related to that matter. This is the case of the reports of subsidies, agreed procedures, judicial experts, etc.
How and when to do an audit?
In addition to complying with the parameters indicated by the Commercial Law, which would result in the need to audit the accounts, there are several reasons that can lead a company to audit its accounts. They can be voluntary, basically in search of transparency and reliability, or for other reasons established by law, as is the case of listed entities, public offering companies, financial intermediation companies, and some insurance branches, those that receive subsidies or public aid or contracts. Also those that will carry out certain corporate operations (mergers, accordion operations, etc.).
It should be taken into account that the Retail audit company will require the maximum collaboration from the company and its staff and, for a few weeks, will have the accounting-administrative department collapsed. In addition, in order to contrast it with the accounts, you will request information about the company and its accounting balances from banks, advisors, clients and creditors.
Thus, the work of retail audit firms in Delhi should be taken as an opportunity, especially for those companies that are in a stage of expansion or growth, because they can count on the opinion of experts that will give them greater added value to their management.