External audit

External audit is an activityindependent experts, aimed at assessing the correctness of accounting and reporting quality in organizations and firms. It can be carried out both at the customer's own request and on a mandatory basis on the basis of regulatory acts of the current legislation.

If an external audit is conducted on demandclient, then a contract is concluded with a third-party organization engaged in the provision of this type of services. In addition, the audit firm can offer services that accompany the main activities, for example, help in the preparation of tax returns, the development of specific plans aimed at stabilizing the financial condition of the enterprise.

External audit involves conducting an auditbalance sheet literacy, correctness of the generated profit and loss statement, as well as the clarity and accuracy of the information displayed in the explanatory note. The inspector is entitled to receive all the information about the enterprise, which is necessary for the qualitative performance of the work. He controls how accurately and in full the revenue and expenditure part of the balance sheet is reflected, and also checks the reliability of the information.

External audit helps an economic entity,as it gives confidence that the company's documentation is in absolute compliance with the legislative acts that regulate the rules of accounting. In addition, the audit helps to maximize profits, as it allows you to develop specific measures to improve well-being based on the analysis.

The main task of a specialist who conducts an auditcompany, is the expression of opinion on the client's reporting, its credibility and literacy. At the end of the check, the expert issues an opinion, which indicates the detected errors and recommendations for their elimination. Such checks allow enterprises to maintain a good reputation among partners. Bank audit is especially important for attracting new investors, partners and investors. In addition, a positive audit opinion is the basis for the tax authorities, because they perceive such reporting with a greater degree of certainty.

External Auditor in the performance of his dutiesmust obey a number of principles. For example, the principle of objectivity means that an expert should perform an impartial and unbiased check, only in this way can an accurate and rational assessment be obtained. The principle of good faith says that the auditor must individually approach each client and perform the work with due diligence and attention.

The fundamental moment is consideredconfidentiality of the data provided by the client for conducting a qualitative check. The employee does not have the right to disclose this information publicly or to transfer it to third parties. Audit company when selecting an employee checks it for compliance with the principle of professional conduct and competence. The first testifies to the priority of public interests and the maintenance of a reputation at a high level. And competence means the availability of the required education and work experience, as well as the possession of certain skills and knowledge, personal characteristics of the person.

And, of course, the auditor should not beinterested in positive results of verification. Therefore, it is impossible to conduct it if the client is a relative of the auditor or is with him in close friendly or other relations. After all, there will be a basis for validating the conclusion as a result of the bias of its drafting.