Using audits for business management purposes

As a business owner, you can effectively use auditing for business management purposes.

What is an audit of financial statements?

Audit of financial statements is the activity of independent auditors and capable of conducting collection and evaluation of audit evidence on audited financial statements in order to give opinions on the average level. true, accurate and reasonable financial statements with standards and standards under current regulations.

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Thus, the objective of the audit of the general financial statements is to provide assurance to third parties who use the financial information whether the information they are provided is truthful, reasonable.

In a market economy, there are many different subjects using audit results for different purposes

  • For banks, those who borrow money, they need to know whether the amount of money they lend is used for the right purpose or not, whether the financial situation of the unit shows the possibility of repayment.
  • For tax authorities, based on the audited financial statements to calculate and collect taxes, similarly, for functional agencies, also based on audited financial statements to perform the function of me
  • For enterprises that wish to audit, through auditing, obtain financial statements in accordance with current accounting principles, standards (or accepted), detect and prevent errors and cheat.
  • For business owners, shareholders need to know fully and correctly about business results,…. In short, the audit must bring users satisfaction to the reliability and truthfulness of the financial information they are provided with.

Auditing service for business management purposes

Is it really necessary to use audit services for corporate management?

Types of current audit:

  • Audit financial statement

The objective of auditing financial statements is to help the audited units clearly see the shortcomings and errors from the auditors 'and auditing companies' decisions to overcome the situation in order to improve the quality of information. finance of the unit.

  • Tax audit

The goal of Tax Audit is to help businesses obtain comprehensive assessments and discover any errors in their tax compliance from compliance review techniques of auditors and auditing companies to Correct compliance with tax regulations for businesses.

  • Business management audit

Depending on the actual needs, specific situations at the business, the audit will help meet the conditions that the business needs, serving the business process of the business.

Additional translations:

Purpose audited for manager, when?

[1] Audit for the purpose of supplementing the capacity to participate in bidding [Bidding Audit]

When an enterprise participates in a bid, according to a circular of the Ministry of Planning and Investment, which details the preparation of bidding documents for goods procurement - the evaluation criteria of capacity and experience stipulates that: to evaluate Contractor's financial capacity, the contractor must submit financial statements to provide information proving the healthy financial position of the contractor. Accordingly, bids must be attached to the audited financial statements.

[2] Auditing for additional real estate business, industries that require legal capital

According to the Circular of the Ministry of Construction, when an operating enterprise needs to supplement its real estate business, there must be a written certification of the independent auditing organization about the existing capital owned. of that enterprise is recorded in the financial statements of the enterprise at the latest time.

[3] Auditing for conversion of business type

Under the provisions of the law, when changing their ownership forms, enterprises must declare tax finalization with the managing tax agency until the time of decision on the conversion of the enterprise type. Accordingly, tax finalization documents are accompanied by financial statements and audit reports avoid tax risks.

[4] Audit for separate purposes

- At the bank's request to comply with the terms of the credit agreement.

- To detect errors or frauds in the accounting system. That is, consider whether the information on the financial statements is truthful and reasonable, containing material misstatement. The detection of frauds and errors is important not only for businesses but also for the economy.

- At the request of business partners in mergers or acquisitions transactions.

- According to specific requirements of the company.

- When businesses need independent and profound views on the internal control system of enterprises. Since then propose reasonable improvements.

- When businesses want to ensure management requirements are submitted on time stipulated by the state or the parent company.

- When an enterprise wants to have an audit report presented according to international standards or parent company standards abroad.

- When businesses want to know the tax risks of businesses. That risk is the risk of not complying with the law on taxes, fees and other receivables of the state budget.

Why choose our audit service?

  • More than 200 years of operation in the industry
  • Experts with 15 - 20 years of experience working in the field of auditing, accounting, tax, information technology, corporate governance at the level of foreign and Vietnamese corporations.
  • Accountants auditors up to more than 70 people
  • Representing corporations, large - small businesses to handle difficult cases at the tax agency

With us, partners can be assured of quality audit services for management purposes

- Audit with deep understanding of business operations, business problems in the current legal environment.

- Consider the risks that businesses face as well as weaknesses in the internal control system.

- Always discuss with the Board of Directors the problems arising in the audit process.

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