Voluntary audit

 

The company conducts voluntary audit at its own initiative not following the requirements of regulatory bodies. Such audit may never be conducted during company’s activity. Still, such service is quite common and has a number of serious economic benefits. For example, the audit is almost always justified if the data are collected for the reorganization of the company’s activity.

As a rule, the voluntary audit of a company is considered to be more thorough and detailed than the mandatory audit. The thing is that during the evaluation and analysis of the activity at the company’s initiative not only accounting and tax reporting may be studied but also the documents evidencing the positive results of the company’s activity in the market for a certain period of time (for example, income from contracts with major suppliers and partners ).

Audit service of such type may be required in the following situations:

- If the owner of a legal entity (for example, shareholders of an Open Joint Stock Company) decides to check the activities of the management structure. In this case the audit allows to make an objective assessment of the current situation and to indicate the prospects of further development of the company.

- If the management structure decides to check the company’s financial subdivisions – the bodies conducting accounting or tax records. This allows you to avoid some of the sanctions of controlling bodies as well as make assessment of staff qualification.

In such case the audit is informal and is used within the company to adjust the work of specialists.

- When the market position of the company and its compliance with the rules and regulations of business is checked. In such case the audit of the company allows to demonstrate the transparency and legality of the company’s activity in order to raise its prestige among the investors, partners and customers.

- Audit of such kind is necessary in case of change of the CEO, Chief Accountant and other responsible staff of the company.

- Voluntary audit can be carried out in accordance with the requirements of different companies - for example, when placing shares, selling business and in case of other activities.

Once again, Audit-Advice is ready to give you everything you need for the successful passage of the voluntary audit!