Types of Audit
Mandatory audit (i.e. required by law) has a primary objective to check whether annual pro-forma financial statements are drawn up correctly, and whether tax calculations are complete.
Voluntary audit (i.e. the one initiated by company’s owners or management) is a choice of companies that want to strengthen and improve their market positions.
When do you need audit?
The mandatory audit criteria are specified in Article 5, Federal Law No.307-FZ ‘On Auditing’. It is worth mentioning that the law sets the following two criteria for LLCs:
- If receipts from the product sales (sale of goods, performing works, rendering services) of an organisation over the preceding reporting year exceeded RUB 400 million.
- If balance sheet assets as of the end of the year preceding the reporting year exceeded RUB 60 million.
Annual financial statements of companies before their transfer to external users (shareholders, tax inspection, credit institutions, etc) are subject to expert examination by an independent auditor.
What is audit for?
A professional audit reveals full and objective information about economic activities of a company to its management, allows to timely spot financial deficiencies invisible from inside, and promptly eliminate them.
Where do we record the audit results?
Upon completion of an audit the client is provided with:
- An audit opinion.
- An audit report.
- Recommendations on elimination of the detected errors and / or infringements.
According to Art. 16 of the Federal Law № 307-FZ dated 30 December 2008 ‘On Auditing’ the auditor's opinion is an official document intended for users of the financial (accounting) statements of the audited entities prepared in accordance with federal rules (standards) for auditor activities and containing a duly opinion of an auditor organisation or individual auditor on reliability of financial (accounting) statements of the audited entity and compliance of its accounting procedure with the legislation of the Russian Federation.
An audit opinion is the finalofficial document valid for the judicial authorities, legal persons and individuals, government authorities.
Quality of Audit by Sterngoff Audit
- All activities of our company’s auditors in the course of audit are focused on achievement of the main objective — forming an objective opinion on reliability of financial statements of an economic entity. This opinion is the audit opinion.
- We generate an audit opinion in strict compliance with the requirements of the applicable legislation on the basis of the audit evidence obtained.
- When generating an audit opinion our employees provide comprehensive data on all critical issues detected during the audit.
- Audit performed by Sterngoff Audit is always carried out as soon as possible, with minimum involvement of accountants and other employees of the company.