Business and Finance System

Posts Tagged ‘The audits’

The audits should reflect the companies’ financial statements. The auditor and benefit functions that relate to the company.

The corporate action affects not only those linked to them on grounds of capital and labor, its scope is broader, and is also of concern to consumers, investors and future or the Public Administration.

The business generates a large amount of information that needs to be known. The companies are a wealth of financial information to be responding to that demand information they create. To produce with a range of quality and quantity information each day more is necessary to have guarantees that underpin and confirm its credibility. It is here that does appear the word audit.

The concept of audit

The American Institute of Certified Public Accountants (AICPA) defines audit as follows: “The independent review of the financial statements of an enterprise, carried out by the auditor (independent qualified professional), in accordance with Generally Accepted Auditing Standards in order to express an opinion on the fairness with which such financial statements present the information contained therein, in accordance with Principles and Generally Accepted Accounting Criteria, which are consistent with those applied in the previous year. ”

The auditor when the field acts sole responsibility is to examine and report on financial statements that are made by the company, expressing his opinion if presented in an appropriate manner the financial situation assets of the entity, the results of its operations and changes in their financial situation.

Beyond their reach and their responsibility is the preparation of financial statements of the entity, nor carry out its accounting admininistración. These tasks are to be made by management of the company.