External financial audit: how it can be useful for an organization

To determine the degree of controllability of a business process, find errors and opportunities for improvement, an audit is carried out. Business coach Alexander Sagalovich tells how this is done.

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– An audit is a set of activities aimed at studying and identifying opportunities for improving both a specific business process and, possibly, some others. Limitations and inconsistencies in one process can be caused by problems in neighboring ones.

The main purpose of the audit is to find ways to improve the efficiency of the business process. In addition, additional goals are possible:

• identifying candidates for promotion (and, if necessary, demotion);
• encouraging initiators of improvements;
• managing relationships in a team.

The audit is not carried out to identify minor deviations from regulations or planned indicators. All this should be identified at the level of operational process management. The audit determines how exactly the operational management of processes was carried out.

Purposes of financial statements audit

The purpose of the audit is to express an opinion on the reliability of reporting and the correctness of accounting in accordance with the law. Based on the results of the audit, specialists draw up an audit report.

To achieve the stated goal, the following tasks must be completed during the audit:

• collect reliable initial information about the financial activities of the audited entity;
• based on the collected audit evidence, draw conclusions about the reliability of the financial statements;
• record comments and recommendations for their correction in a separate document.

The essence of external financial audit

The economic entity responsible for the conduct of the external financial audit is obliged to:

1. Carry out a comprehensive analysis of assets and liabilities, as well as income and expenses of the organization for each type and separately for each type of activity.
2. Study financial ratios, valuation principles, recognition of liabilities and assets.
3. Assess the impact of all accounting policies, including pro forma values ​​and estimates.
4. Identify and objectively evaluate factors influencing the main financial indicators of the enterprise.
5. Establish the nature of the movement of financial flows and determine the elements that guide them.
6. Formulate an opinion on the prospects for the development of the company’s financial activities.
7. Determine the real possibility of following these forecasts, taking into account the current sales volume and financial situation of the organization.

Audit of financial statements

The audit can be mandatory or proactive.

Organizations undergo mandatory audits in accordance with the legislation of the Russian Federation.

Companies conduct proactive audits based on their needs. The head of the organization enters into an agreement with the audit firm, and within the agreed time frame, the auditors conduct a proactive audit. In this case, you can check all accounting areas, or you can select individual objects.

During the proactive audit you can:

• Check the accuracy of financial and accounting statements. This will help identify weaknesses and errors in the documentation and correct accounting in a timely manner. It's safer to find and fix errors before the tax inspector arrives. In addition, with an audit report in hand, it is easier to attract investors.
• Check the knowledge and qualifications of the company's accounting service. If necessary, send employees to improve their skills and schedule training seminars.
• Analyze tax risks and reduce them to a minimum.

Audit is also divided into internal and external. An internal audit is most often carried out by an organization's in-house auditors. External audits are carried out by independent audit organizations with the aim of objectively assessing the state of accounting and reporting.

A high-quality audit will help you really evaluate the work of the enterprise’s accounting service and see problems in document flow and accounting in general.

How else is an external financial audit useful for a company?

In addition to checking the reliability and legality of financial reporting data, an external audit can be aimed at solving the following tasks:

• optimization of the tax burden and planning of the tax burden;
• development of recommendations for managers and specialists responsible for accounting to resolve financial difficulties;
• transformation of Russian reporting into an international format (if this need is due to the specifics of the company’s activities);
• improving the organization's accounting policies in order to reduce the tax burden.

External financial audit is carried out by legally and organizationally independent entities: specialists from authorized organizations or individuals. The reviewing expert must ensure an objective, impartial and complete assessment of the available data. External audits are carried out for a material fee, the amount of which is determined by agreement of the parties.

Who is subject to mandatory audit

Organizations that meet certain criteria must undergo mandatory audits.

The Federal Law of December 30, 2008 No. 307-FZ “On Auditing Activities” identifies six criteria:

1. The organization has the form of a joint stock company.
2. The company's securities are admitted to organized trading.
3. The company is a credit organization, a credit history bureau, a professional participant in the securities market, an insurance organization, a clearing organization, a mutual insurance company, a trade organizer, a non-state pension or other fund, a joint-stock investment fund, a management company of a joint-stock investment fund, a mutual investment fund or a non-state pension fund.
4. The company's revenue for the previous year exceeds 400 million rubles or the balance sheet exceeds 60 million rubles.
5. An entity files or publishes consolidated financial statements.
6. An organization is required to undergo an audit due to certain laws. For example, developers, state corporations and others.

A mandatory audit is required if the organization meets at least one of the listed criteria.

Audit

Have you achieved professional success in accounting or another industry? Do you consider yourself an experienced specialist? Perhaps it's time for you to become an auditor. But to become a successful auditor you need not only to have enough experience in the industry, you also need to have excellent theoretical knowledge in the field of auditing. And to help you understand, we decided to explain more clearly what auditing is, auditing activities, types of auditing, auditing methods and what laws regulate auditing (auditing activities and auditors).

The content of the article

:

Audit Issues Considered

• What is an audit
• Laws regulating auditing activities
• Types of audit
• Types of audit services (audit services)
• Concept of Audit activity and audit - Concept of Audit activity (audit services) - Concept of Audit
• Audit methods - Audit methods - Audit methods
• Video about audit
• Information sources

What is an audit

Definition of “Audit” in short and simple words

- an examination of a particular type of activity of an organization for the purpose of analysis for effectiveness, compliance or reliability, followed by the expression of an audit report based on the results of such examination.

Interpretation of the term “Audit” in accordance with the legislation of the Russian Federation

(Clause 3 of Article 2 of the Federal Law of December 30, 2008 N 307-FZ “On Auditing Activities”) - an independent audit of the accounting (financial) statements of the audited entity in order to express an opinion on the reliability of such statements. For the purposes of this Federal Law, the accounting (financial) statements of the audited entity mean the statements (or part thereof) provided for by the Federal Law of December 6, 2011 N 402-FZ “On Accounting” or other regulatory legal acts issued in accordance with it, similar in the composition of the statements (or part thereof) provided for by other federal laws or other regulatory legal acts issued in accordance with them, as well as other financial information.

The concept of “Audit” in the broad sense of the word

- an independent audit of the financial and economic activities of the organization, as well as processes, systems, products, documentation, etc., for the purpose of analyzing for effectiveness or compliance with legislative acts, or the reliability of the information provided and expressing a reasonable audit opinion based on the results of such verification.

Laws regulating auditing activities

As is known, the activities of auditors are strictly regulated by law. Let us list the main legislative acts (laws) regulating and regulating the activities of the auditor and auditing activities (audit).

Federal Law of July 3, 2016 N 360-FZ (On entering information about membership in SROs and the results of mandatory audits) in *.pdf format (PDF)

Decree of the Government of the Russian Federation dated June 11, 2015 N 576 (On approval of the Regulations on the recognition of international auditing standards as subject to application on the territory of the Russian Federation) in *.pdf format (PDF) Order of the Ministry of Finance of Russia dated August 5, 2015 N 122n (On approval of the Procedure for conducting an examination of the applicability of documents , containing international auditing standards on the territory of the Russian Federation) in *.pdf (PDF) format Information message of the Ministry of Finance of Russia dated December 1, 2015 (On international auditing standards) in *.pdf (PDF) format

Federal Law of December 1, 2014 N 403-FZ (On fulfilling the requirement for the number of members of a self-regulatory organization of auditors) Federal Law of December 30, 2008 N 307-FZ (Article 18. Requirements for membership in a self-regulatory organization of auditors)

Federal Law of December 30, 2008 N 307-FZ “On Auditing Activities”

Federal rules (standards) of auditing activities in *.pdf format (PDF)

Rules (standards) of auditing activities approved by the Commission on Auditing Activities under the President of the Russian Federation in *.pdf format (PDF)

Other documents regulating audit activities in *.pdf format (PDF)

Types of audit

Types of audit are well studied by many legal scholars. Therefore, it is possible to carry out different classifications of audits depending on the various characteristics that underlie the classification. Let's list the existing types of audit

.

Audit in relation to the audited organization

:

• external
  – assessment of the reporting system, verification and assessment of the organization’s assets and liabilities, testing of the existing internal control system;
• internal
  - a system of control organized by an economic entity, acting in the interests of its management or owners, regulated by internal documents over compliance with the established accounting procedure and the reliability of the functioning of the internal control system.

Types of audit according to the tasks to be solved

:

• Management, or production, audit
  - checking and improving the organization and management of an enterprise, the qualitative aspects of production activities, assessing the efficiency of production and financial investments, productivity;
• Audit of economic activities
  – an objective examination and comprehensive analysis of certain types of activities;
• Compliance audit
  - analysis of certain financial or business activities of an entity to determine its compliance with prescribed conditions, rules or laws;
• An audit of financial statements
  is an examination of the entity’s statements in order to make an opinion on its compliance with established criteria and generally accepted accounting rules.
• A special audit
  is a check of specific issues in the activities of a business entity, compliance with certain procedures, norms and rules; its goal is to confirm the legality, integrity and efficiency of managers, the correctness of tax reporting, the use of social funds (environmental, legal, operational, audits, etc.).

Types of audit by time of implementation

:

• The initial audit
  is conducted by the auditor for the first time for a specific client. This significantly increases the risk and complexity of the audit, since auditors do not have the necessary information about the specifics of the client’s activities and its internal control system;
• an agreed audit
  is carried out by the auditor repeatedly or regularly and is therefore based on knowledge of the client’s specifics, its pros and cons in organizing accounting, as well as the results of long-term cooperation with the client (consulting, assistance in organizing an internal control system);
• An operational audit
  is a short-term audit to make a general assessment of the state of accounting, reporting, compliance with legislation, the effectiveness of internal control, and performance assessment.

Types of audit by nature of inspection

:

• confirmatory audit
  – checking and confirming the accuracy of accounting documents and reporting;
• system-oriented audit
  – audit examination based on analysis of the internal control system;
• Risk-based audit
  – concentration of audit work in low-risk areas.

Types of audit according to mandatory conduct

:

• Mandatory audits
  are carried out in cases established by law or on behalf of government bodies. The scope and procedure for conducting a mandatory audit are regulated by law;
• proactive audit
  is carried out by decision of an economic entity on the basis of an agreement with an auditor (audit firm). The nature and scope of such verification is determined by the client.

Types of audit services (audit services)

There are many types of audit, or rather types of audit services. We list the main types of audit services

being the main ones (leading areas of audit activity):

• Financial audit
  is a comprehensive independent audit by auditors of the economic condition of an organization, expressing an assessment of its reliability and development prospects;
• An investment audit
  is an audit of professional participants in the securities market, various investment funds, and also includes a comprehensive audit of the investment project with the expression of the final assessment;
• Industrial audit
  is a special system of measures that combines elements of one-time financial and technical control of the volume of work actually performed or work being performed and their quality for compliance with projects, the requirements of building codes and regulations, standards, technical specifications and other regulatory documents.
• A management audit
  is a diagnosis of an organization’s existing management system for its production, commercial and social activities in order to identify problems and determine ways to solve them, to find ways to improve the effectiveness and efficiency of the company.

We will also list the most popular highly specialized areas and types of audit services

, in other words, we will tell you about the most popular highly specialized areas of audit activity:

• Tax audit
  is the performance by an audit organization of a special audit assignment to review the accounting and tax reports of an economic entity in order to express an opinion on the degree of reliability and compliance in all significant aspects with the norms established by law, the procedure for the formation, recording and payment of taxes and other payments by an economic entity budgets of various levels and extra-budgetary funds;
• Operational audit
  is a check of the economic system, business operations, estimates, methods of functioning of the economic system, target programs in order to assess their productivity and effectiveness;
• An audit of the sales department
  is an analysis and verification of the work process of the entire sales system: segmentation of client requests at the entrance, qualifications of personnel in communicating with clients, the process of working with client requests and the employee motivation system;
• An expense audit
  is an audit of all indicators in the financial statements of an organization in the context of expenses, followed by an assessment of the reliability and compliance of their accounting with the requirements of regulations;
• Personnel audit (personnel audit)
  is a procedure for assessing the effectiveness of the existing personnel management system in a company in order to obtain an accurate and independent analytical assessment of the compliance of the organization’s personnel potential for compliance with its goals and development strategies;
• A site audit
  is a comprehensive analysis of an Internet resource for its compliance with the requirements imposed by markup standards, search engines for competent search engine promotion and optimization, as well as assessing the attractiveness of the resource for users;
• A PR audit
  is a comprehensive, comprehensive assessment of external and internal communications of an organization or project, a tool for tracking the results of a particular PR campaign to analyze the rationality of the resources used, as well as the development and implementation of strategic plans for promoting goods and services of projects or the organization as a whole. ;
• An environmental audit
  is a comprehensive and independent assessment of compliance with requirements, including the requirements of current international standards, regulations and regulatory documents in the field of environmental safety, environmental management and environmental protection, as well as the preparation of relevant recommendations and their documentation to improve the activities of enterprises and organizations in environmental sphere;
• Audit for compliance with legal requirements
  (Legal / Legal audit) - analysis of specific financial or business activities to determine its compliance with prescribed conditions, rules or laws, is also necessary to find out whether legally significant documents used in the work meet the interests of the enterprise (see also legal assistance in Cheboksary);
• Price audit
  is an independent expert assessment of the economic, technical and technological characteristics of a product, work, service or investment project to determine the validity of the set price.

The concept of auditing and verification

So what is auditing and auditing? Future auditors have asked themselves this question at least once. Therefore, in this section we decided to tell you about these two terms.

Concept of Auditing activities (audit services)

First, we will reveal the concept of auditing activity from the point of view of legislation (clause 2 of article 1 of the law “On Auditing Activities”). The term “Audit activity” (audit services)

— activities related to conducting audits and providing audit-related services carried out by audit organizations and individual auditors. Auditing activities do not include inspections carried out in accordance with requirements and in a manner different from the requirements and procedures established by auditing standards.

Let us consider in a broad sense the definition of auditing activities (audit services) in the Russian Federation. Auditing activities (audit services)

— entrepreneurial activity of auditors (audit firms) to carry out independent non-departmental audits of a particular type of activity of an organization for the purpose of assessing it or checking for reliability, based on the results of which an independent audit report is drawn up.

Concept of audit

Now let’s expand on the concept of audit. The term "Audit"

- this is a set of activities consisting in the collection, assessment and analysis of audit evidence relating to the audited type of activity of the organization, and resulting in the expression of the auditor’s assessment of the reliability of the information provided, the correctness and efficiency of the activities of the economic entity.

Read also:  Electronic signature (EDS): why it is needed and how to obtain it for individuals and legal entities

Audit Methods

In auditing activities, quite a lot of different methods of conducting an audit of an organization and methods used directly during the audit are used. We would like to note that with the help of methods, not only the object of the audit is learned, but thanks to them the process of organizing the audit itself is also streamlined.

Audit Methods

Currently used audit methods, or rather methods for organizing audits

(audits) are divided into:

• According to the extent of coverage of the data being checked: - A complete check
  consists of studying the entire set of primary documents, analytical and synthetic accounting registers, as well as financial statements
• — Sampling testing
  is based on the laws of probability theory, according to which it is possible to obtain fairly objective data about the population being tested from its relatively small part. According to the requirements of Federal Rule (Standard) No. 16 “Audit Sampling”, approved by Decree of the Government of the Russian Federation dated 07.10.02 No. 532, all elements of the population being studied must have an equal probability of being selected for the sample.
• — Combined verification
  uses methods of continuous and selective verification.

Methods used in conducting an audit

Also, we consider it necessary to list the methods used during the audit

:

• General scientific methods
  , which include: 1)
  Laws of dialectical and formal logic
  (laws: the transition of quantitative changes into qualitative ones; unity and struggle of opposites; negation of negation; contradiction; excluded middle; identity);
• 2) Categories of dialectical logic
  (analysis, synthesis, induction, deduction, abstraction, analogy, modeling, experiment);
• 3) General scientific approaches
  (objectivity, systematicity, complexity, historicity).

Balance sheet method
- it uses the method of equality of two sides (parts): funds and sources, receipt and use of resources, etc.

Video about audit

You can also watch short videos about auditing (on the topic of auditing).

Information sources

Our law firm in Cheboksary, PravoDeystvie LLC, sincerely thanks the following sources for providing information: Reference and legal system "Garant", Reference and legal system "Consultant", pages ru.wikipedia.org: Audit, External audit, Internal audit; www.grandars.ru, www.bibliotekar.ru, cribs.me, www.sergeeva-i.narod.ru, www.rusnauka.com, webprofiters.ru, gaap.ru.

The procedure for conducting an audit of financial statements

There are no fixed deadlines for conducting an audit. Some organizations prefer to conduct an audit in several stages, while others invite auditors after the end of the reporting year.

Not all auditors have the right to conduct statutory audits. The Ministry of Finance publishes on its website a list of organizations and individual auditors that are allowed to conduct statutory audits. A number of companies are prohibited from engaging individual auditors in audits: credit and insurance organizations, non-state pension funds, etc. (Article 5 of the Federal Law of December 30, 2008 No. 307-FZ).

The procedure for conducting an audit depends on various factors. In general, the following stages of working with an audit company can be distinguished:

1. Analysis of tasks and determination of audit costs.
2. Approval of inspection deadlines.
3. Formation of a group of auditors.
4. Audit of accounting and financial statements.
5. Drawing up a report and recommendations.
6. Drawing up an audit report.
7. Consulting the customer, explaining the recommendations provided.

Before signing a contract, auditors carefully study the client. Independent auditors look at the technical equipment and automation of accounting at the enterprise, evaluate the specifics of the activity and the qualifications of staff accountants, analyze the financial condition, check for the presence of obligations and litigation.

Next, the audit company develops an audit plan and schedule with dates. Specialists are selected for each stage of work.

The check begins. To obtain evidence, auditors perform special procedures: recount, inspection, oral questioning of employees, confirmation, inspection, study of documents.

Having collected and analyzed evidence, the specialist prepares an audit report and conclusion. The audit report will be positive if no negative facts are found. If errors and inaccuracies are found, a modified conclusion is issued. In some cases, the auditor may issue a refusal to express an opinion.

The audit report is submitted to the tax office. The company can submit the conclusion together with the reporting or separately. The deadline for submitting an audit report to the Federal Tax Service is December 31 of the year following the reporting year. In this case, the approved conclusion must be submitted within ten days from the date of its signing.

Until 2021, it was necessary to submit reports and audit reports to the statistical authorities. This obligation has now been cancelled.

Stages of external financial audit

Since the audit is a fairly large-scale undertaking, it is carried out in several stages.

1. Preparation.

The auditor's work begins with getting to know the client. At this stage, the inspector must obtain the most complete and reliable information about the organization’s activities. Based on the information received, the auditor assesses the possibility of conducting an audit (whether the organization’s employees will be able to provide assistance or whether it will be necessary to attract outside specialists), and also calculates the approximate time and material costs.

At the preparatory stage of the external financial audit, worksheets are compiled into which the following information is entered:

• the specifics of the activities of the company being inspected and the characteristics of its location (geographical, economic, tax conditions of the region);
• characteristics of the organization’s financial situation (solvency, ability to overcome the economic crisis);
• organizational and technological nuances of the enterprise’s activities (to understand the formula for the cost of manufactured products);
• data on the professionalism of employees responsible for accounting for financial indicators;
• level of automation of accounting processes (with the help of which program financial indicators are recorded);
• information on transactions with securities;
• features of the internal control system;
• data on the client’s financial obligations;
• materials of legal proceedings in which the customer is involved.

After studying the listed items, the auditor sends a letter to the client regarding the audit. The letter contains information about the scope, timing, cost of the audit and other nuances of the upcoming audit. As a result, the head of the audited organization and the auditor must come to a consensus regarding the conditions for conducting the audit. After this, all the nuances of the process are reflected in the contract for the provision of audit services.

2. Planning.

The success and efficiency of the audit almost entirely depends on the quality of the plan for the upcoming work. Planning an audit is a rather complex procedure that requires a significant amount of time (sometimes it takes 1/5 of the total time spent on the audit). Here is an approximate algorithm for the stage under consideration:

• pre-audit planning;
• preparation and formation of a general plan;
• preparation and drawing up of an audit program.

In the process of developing a general plan, one should take into account the specifics of the audited company’s activities, the successful functioning of the accounting and internal control systems, the presence of problem areas in the accounting system, time costs determined by the volume of operations and the level of accounting automation, as well as the need to attract experts.

In agreement with the audited organization, at the planning stage, a schedule for conducting an external audit is developed and the composition of the working group is determined.

After this, a financial audit program is drawn up, which takes into account the nature, duration and scope of the planned procedures.

Items of the plan and activities of the audit program can be adjusted as necessary.

3. Check.

External financial audit consists of collecting, analyzing and evaluating financial indicators characterizing the economic activities of the audited company. During the financial audit process, experts use techniques and carry out activities that comply with legislative and internal auditing standards.

Activities aimed at collecting information about the financial data of the audited company include:

• recalculation;
• inspection (usually it is carried out during the inventory);
• confirmation (to obtain official information about bank account balances, etc.);
• oral survey;
• inspection;
• analytical activities (i.e., assessing financial statements by comparing its individual indicators).

The main purpose of the above activities is to identify incorrect or questionable data, to which the auditor should pay special attention.

4. Presentation of results.

The results of the external financial audit are documented in the following documents:

• An audit report, which is an official confirmation of the reliability of the financial statements of the audited enterprise. The auditor's report must also contain the results of an objective analysis of the property status and results of the company's activities for the period under study.
• A written report that includes data on all incorrect information identified during the financial audit. Errors must be recorded by the auditor in accordance with current standards of regulatory documents. In addition to a list of errors found during the audit, the report should also contain recommendations for eliminating them.
• A document in which the auditor sets out his vision of the current situation, and also makes recommendations for improving the financial condition of the organization and increasing the efficiency of the enterprise’s financial management system.

In modern business practice, the conclusion of an independent audit is the best confirmation of the reliability of the company’s financial condition and is highly valued by partners, clients and credit institutions.

What documents are subject to verification?

When auditing financial statements, specialists study not only annual financial statements, but also various registers, contracts, accounts, personnel and other related documents.

In particular, auditors may request:

• primary documentation to verify the formalization and legality of the transaction;
• inventory sheets;
• documents on created reserves;
• contracts;
• constituent documents;
• bank statements;
• financial statements and declarations;
• balance sheets, analysis and account cards;
• personnel orders;
• expense reports;
• staffing table, etc.

Auditors check not only documents, but also various calculations. For example, payroll calculation, calculation of taxes and penalties, calculation of exchange rate differences and material benefits, etc.

The audit company assesses the financial risks of the audited entity. Analyzes overpayments and debt to counterparties and the budget. Based on the assessment results, auditors make recommendations to eliminate errors and minimize risks.

Who can conduct an external financial audit of a company?

Mandatory audits can only be carried out by specialists from auditing companies. This means that individuals (individual auditors) do not have such powers.

The process of selecting a potential auditor has its own nuances. Thus, companies selected based on the results of an open competition must conduct audits in organizations whose authorized capital is at least 1/4 owned by the state or municipal entity.

Another important criterion when choosing a potential auditor is his independence. An external audit cannot be carried out by a person who is one of the founders of the audited enterprise or holds a position related to the preparation of financial statements of the audited organization (close relatives of the listed categories of citizens also do not have the right to conduct an audit).

Auditing organizations that, less than 3 years before the audit, provided services for the restoration and maintenance of financial statements, are also prohibited from checking the financial statements of an enterprise.

Typical errors and violations

Some possible violations depend on the specifics of the activity of the person being inspected. Common and common mistakes, regardless of the field of work, include:

• incorrect calculations of tax payments;
• discrepancies in reporting indicators;
• lack of permitting documentation (licenses, certificates, declarations and other permits);
• inventory and arithmetic errors;
• non-compliance with control ratios in reporting or contradictions in different reports (for example, sales revenue for no apparent reason is different in VAT and profit declarations);
• incorrect filling of details;
• arithmetic errors;
• incorrect calculation of income and expenses;
• collapsed reflection of receivables and payables. The debt must be formed in the context of contracts for each counterparty so that it is possible to separate receivables and payables;
• the authorized capital on the balance sheet does not coincide with the capital stated in the company’s charter;
• the authorized capital is not paid or not fully paid;
• there are no primary documents;
• the required reserves have not been accrued;
• the cash register limit is violated, etc.

Violations of fixed assets:

• real inventories are not carried out, as a result, the actual balances of property and debt do not coincide with those reflected in the accounting;
• deadlines for registering fixed assets are not met;
• there is no analytical accounting;
• expenses for modernization or inventory were taken into account incorrectly;
• the document flow of various operations is disrupted.

Tax violations:

• The lease agreement does not indicate the cost of the leased object. As a result, difficulties arise with the calculation of property taxes;
• unreasonable understatement of taxes;
• VAT is accepted for deduction without supporting documents;
• penalties and tax penalties are not reflected;
• incorrect reflection in the accounting (financial) statements of receivables and payables for settlements with the Federal Tax Service. The organization is obliged to reflect in its reporting settlements with the budget in amounts agreed upon with the Federal Tax Service. Before drawing up a balance sheet, you need to reconcile with the tax office and eliminate discrepancies;
• legal expenses, penalties, fines are not reflected (untimely reflected). The taxpayer must reflect the penalties and fines received and paid in court in non-operating income or expenses on the date the court decision comes into force. Often, information about legal proceedings reaches the accounting department with a delay. Late reporting of income leads to an understatement of the tax base and, as a consequence, income tax.