Balance sheet audit assignment
An audit signifies examination of any firm’s accounting records. This is generally undertaken by an accountant. The aim of audit is to ensure that the business maintains its records as per the accounting principles.
A balance sheet signifies a financial record which comprises of assets, liabilities, details pertaining to equity and other similar records on a specified date.
A balance sheet audit is considered to be a partial audit as it investigates only the accounts mentioned in the firm’s balance sheet. In such audits the correctness of an enterprise’s assets including their existence, ownership and worth is judged. The main aim for this audit is to ensure that the profit/loss statement of the company is proper.
There are some parts of a balance sheet audit, like cash audit, accounts receivable audit, accounts payable audit and inventory audit. While the long term investments and fixed assets cannot be easily misrepresented, the details related to intangible assets, inventory and accounts payable can easily be manipulated. Hence, an in depth audit that is supported by some background work about the company is required to present a true picture of its financial situation. Learning the procedures from experts will help.
A balance sheet audit assists in indicating that the information depicted in the balance sheet is accurate. It comprises of several checks based on relevant documents. This audit helps to identify and pinpoint irregularities or deficiencies in the accounting techniques followed by a company. The audit is also helpful in identifying the financial strength of a company.
When a balance sheet is 100% accurate and portrays true information about a company, proprietors can win the confidence of board members, employees and, most importantly, investors. Hence, it is a must to get the basics of doing Balance sheet Audit clear. Learn from a reliable firm, which has a knowledgeable team of auditors who will teach you all about accounting practices and conventions. Reach us to get information about this service or place your order now.