Auditing is not bookkeeping. The auditor expresses an opinion on statements prepared by someone else, on whether they present the financial position fairly. That is why the auditor must be independent of whoever kept the books, and why statements without an auditor's signature cannot be filed.
An audit opinion has degrees; it is not simply pass or fail. A qualified opinion, or an emphasis on going concern, affects bank facilities, eligibility to tender, and work permit applications for foreign staff.
We have a certified public accountant in the firm, and keep the bookkeeping and the audit engagements separate as independence requires.
What we do
- Audit the annual financial statements and issue an opinion under the auditing standards.
- Review internal controls and report observations to management in writing.
- Attend inventory counts and verify fixed assets.
- Special-purpose audits for a sale of the business, a joint venture, or where shareholders question the figures.
- Give accounting opinions in shareholder disputes that turn on the numbers.
What delays an audit or produces qualifications
- Missing supporting documents, particularly expenses with no tax invoice.
- Transactions with directors or affiliates that no agreement supports.
- Receivable and payable balances carried for years with no movement.
- Inventory not counted, or counted and not reconciled.
- A personal bank account used alongside the company's.
What to have ready before the year end
- Books closed and bank reconciliations done monthly, not once at the year end.
- Supporting documents filed in order and retrievable.
- Agreements in place for all related-party transactions.
- An inventory count at the closing date, with a count report.
- Written confirmations of balances from significant customers and suppliers.
This page is general information, not accounting advice for your business. The scope of an audit is set by the size and nature of the company.