Frequently asked questions
An audit consists of the inspection and verification of the information or processes of an entity. They are made to improve the functionality of a company. That’s why they detect deficiencies (risks, frauds, mistakes), contingencies (in the fulfillment of obligations) and areas of opportunity.
Audits depend on the objectives we want to achieve, the most common audits are:
• Financial statements audits.
• Audits for fiscal, federal or local taxes effects.
• Information Technologies audits.
• Internal audits.
• Fraud audits.
• Acquirement of companies audits.
• Alienation of shares audits.
• Evaluation of internal control audits.
Audits allow a company to know its own functionality deeply. This way, you can learn if you are fulfilling with fiscal and legal obligations if there are risks or possible frauds, if it’s necessary to adopt new technologies or if changes should be made in order to achieve institutional goals.
It’s recommendable to do voluntary audits because:
• Less likely to receive domiciliary visits or authority audits.
• Obtain savings in recharges or fines.
• An audit serves as a shield before direct inspections from the authority.
• You can take advantage of the identified opportunities or benefits.
• It anticipates the attention to identified risks or contingencies.
If you don’t do any audits, you are more likely to receive very soon a visit from the authorities, new requirements or penalty fees. Also, the risk of falling into mistakes and frauds increases. Finally, third parties won’t trust your processes or financial information.
It’s highly recommended to have audit processes because:
• It improves the decision making, by having trustworthy and truthful financial information.
• Third parties such as Credit Institutions, providers, authorities or investors become more confident with the situation of your company.
• It contributes to the accomplishment of the goals established by CEO’s or shareholders.
• It adds value to your company, by anticipating risks or contingencies.
• You can take advantage of identified opportunities or benefits.