An initiative is an audit that is performed at the request of the company's management. It is carried out, first of all, as a preventive measure and represents:
- Audit of accounting estimates and organization of accounting processes;
- Analysis of foreign economic operations;
- Verification and legal expertise of contractual practice;
- Audit of accounting estimates;
- Definition of knowingly unprofitable transactions.
An initiative audit helps prepare for a tax audit. Carrying out such an audit on a personal initiative ensures the security of the company in financial terms, bringing accounting and tax accounting in compliance with the requirements of the law.
When the need arises for
The main reason why you should contact an auditing agency to order an initiative audit is suspicion about possible errors in reporting.
As a rule, it is carried out in such cases:
- Change of ownership of the organization;
- Sale of the analyzed company as a property complex;
- Organization of accounting;
- Checking the quality of work of employees;
- Determining the state of accounting and assisting accounting;
- Development of a plan for the exit of the enterprise from the crisis;
- The introduction of large investments;
- The need to increase the confidence of partners or investors.
3 key ingredients
Initiative audit includes:
- Full analysis of the existing tax and accounting system, document flow and financial flows;
- Analysis of the correctness of the reporting documentation;
- Consultation on the accounting organization, taxation and reporting.
Depending on the goals and objectives of the customer, STILL LIFE can conduct a comprehensive or partial audit. Before it starts, all the conditions for the provision of the service are negotiated and approved individually with the client.
1. Estimate the upcoming scope of work;
2. Approval of the timing of the audit and discussion of the nuances of cooperation;
3. Organization of the working group and documentation;
4. Develop a follow-up plan;
5. Directly verification;
6. Providing recommendations to eliminate the identified inaccuracies;
7. Preparation of a preliminary report;
8. Coordination of the results with the client;
9. Registration of the final audit report.
The results of the initiative report are strictly confidential and are not disclosed by STILL LIFE staff.