Audit is an independent verification of a separate type of company activity for the purpose of analysis for efficiency, conformity, or reliability, with subsequent expression based on the results of such verification of the auditor’s report.
Types of audits by compulsory conduct:
a compulsory audit is carried out in cases established by legislation or on behalf of state bodies. The scope and procedure for conducting a statutory audit are regulated by legislative norms.
an initiative audit is carried out by decision of an economic entity on the basis of an agreement with an auditor (audit firm). The nature and extent of such verification is determined by the client.
Let’s take a closer look at the statutory audit.
1) companies whose securities are admitted to organized trading.
2) companies that are professional participants in the securities market, credit bureaus.
3) companies that have the organizational and legal form of a fund in the event that the receipt of property, including cash, for the year immediately preceding the reporting year exceeds 3 million rubles;
4) companies that meet at least one of the following conditions:
a) income received from the implementation of entrepreneurial activity, which is determined in the manner prescribed by the legislation of the Russian Federation on taxes and fees, for the year immediately preceding the reporting year, is more than 800 million rubles;
b) the amount of assets of the balance sheet as of the end of the year immediately preceding the reporting year is more than 400 million rubles.
2. Mandatory audit is carried out annually.
3. SP are exempted from this obligation.
Companies whose financial statements are subject to statutory audit are not entitled to draw up and submit simplified financial statements.
Companies must submit a mandatory copy of the annual financial statements to the tax authority at their location in electronic format no later than three months after the end of the reporting period.
These are the criteria for a statutory audit, and this should be considered when forming the balance sheet.