audit society

 

In order for the audit of the annual accounts or verification work to be legally qualified as an “account audit”, it will necessarily have to be carried out by a company of auditors, by issuing the corresponding report and subject to the requirements and formalities established in the Audit Law and technical auditing standards.

The audit firm must have professionals who have:

 Technical training and professional capacity as auditors

 Have the legally required authorization.

The auditing activity may be carried out by legal persons (companies) that, meeting the requirements established in the Law on Auditing of Accounts and the Regulations that develop it, are registered as practitioners in the Official Register of Account Auditors of the Accounting and Auditing Institute. of Accounts and have provided a guarantee of the responsibilities that they may incur in the exercise of their activity.

The purpose of an audit firm is to certify the reliability of the financial statements, so the audit firm has to design and apply procedures that help obtain the appropriate information, generate reasonable conclusions and issue an independent opinion on the presentation of the figures. that appear in those states.

The Audit Companies must be made up exclusively of Certified Public Accountants resident in the country. No Public Accountant can be a member of another Audit Society in the country. The Audit Companies must be constituted in accordance with the General Law of Companies, Book III Section Fourth, therefore, they may not adopt other forms than those contemplated in the aforementioned legal basis and the articles of incorporation must be recorded in a public deed.

If you start from the economic and social reality where the deficiencies and sometimes the absence of controls over any type of resource; the lack of interest and social indiscipline and other evils that weigh down economic activity in our days, it is evident the importance of Accounting and the Auditing society in the fight for the elimination of squandering, waste and the use of scarce and so precious resources available to an entity.

 This paper will deal with the theoretical foundations of the audit company, as well as the aspects related to the development and evolution of auditing as a science, taking into account its definition, general concepts of the audit company. In addition, some general considerations regarding the functions of the audit firm, its objectives and the generally accepted standards for this type of audit firm are discussed.

The audit as an essential part of the audit companies is to make applications of the scientific principles of accounting, based on the verification of the patrimonial records of the entities, to observe their accuracy in their financial statements.

The auditing companies are in charge of auditing the entities that seek to attract new investors, bank loans, it also serves for future decision-making, both for problem solving and / or future growth of the entity.

The report that the auditing company presents to the entity at the end of the audit contains the auditor's opinion on the fidelity and accuracy of the audited accounts. It is normally addressed to shareholders and members of the board of directors if it is the annual accounts, or whoever has commissioned it if it is a specific audit, for example, before carrying out an acquisition. Its purpose is to ensure that all economic transactions have been recorded and that the financial statements reflect as accurately as possible the true financial and financial situation of the entity and are presented in accordance with generally accepted accounting principles (GAAP).

The auditing company indicates that it has complied with the standards established by the profession for conducting the audit. The standards establish criteria for the professional qualifications of the auditor, the nature and scope of the criteria applied to the audit and the preparation of the report.

The audit firm will obtain an understanding of the client's business and its internal control structure, perform analytical procedures and gather sufficient and competent evidence based on the perceived risk of significant error identified in the planning of the audit. The objective of an audit is to obtain reasonable assurance that the financial statements do not contain material errors, fraud or other inaccuracies.

The basis for an opinion of the audit firm is the evidence obtained by the auditor, who performs the audit procedures to gather such evidence.

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