Taking into consideration that the basic function in the Financial Statements Audit is to develop the necessary work to express an “OPINION” about these states, the work orientation is directed not only to the revision of accounting balances but also to the validation of procedures and standards applied to ensure an adequate Internal Control.
For this is why our work methodology is developed in the following areas:
a).- The first stage includes the examination of the administrative and accounting systems and procedures that ensure internal control.
The review indicated is made on the different operational and administrative flows, for that purpose Internal Control questionnaires are used that are adapted to the characteristics of each Company.
At the end of the review phase, a report is prepared containing mainly observations on the deficiencies of Internal Control and recommendations aimed at improving the problems detected.
In this way, the nature, extent and timing of the application of audit procedures are determined.
Together with the evaluation of procedures, the review of operational and administrative transactions such as Sales, Purchases, Inventories, Liquidation and payment of Remunerations are carried out. In this way, audit work is carried out and complemented in the following stages.
b).- The second stage is carried out at the closing date of the financial statements, or very close to it.
Basically, the collection of funds, documents and securities are carried out, physical inventories of products and raw materials, and possibly of fixed assets, are observed.
In the same way we proceed to the confirmation of Banks balances, Debtors, Loans, Suppliers and others.
c).- The final stage is made after the balance sheet date and on this the final review of the accounting figures generated by the financial statements and their respective notes.
Our work ends with the issuance of our opinion on financial statements and changes in financial position.