duminică, 26 septembrie 2010

AUDIT QUALITY IN

Chamber of Financial Auditors of Romania (CAFR) carry out the audit offices to verify compliance with the quality of the profession and professional.



After the checks are given grades of quality between A and D.

T & T AUDIT SRL has obtained grade A.



COMPUTERISED AUDIT



Companies, especially those belonging to multinational groups, operating with advanced information systems covering both financial and accounting functions, as well as controlling functions, budgets, costs, strengthen international reporting, especially modules include more sophisticated operational technical, with private industry.

Audit profession must keep pace with the evolution of information technology.



A measure of competence in the audit involves the ability to work with databases collected from such systems.

Internationally have established computerized audit techniques (Computer Assisted Audit Techniques - CAATs) involving the collection, processing, selection, structure and dynamics analysis, correlation, investigation of large databases with millions of records.



Computerized audit is a solution to avoid suffocation and audited company, having the possibility to extract only the data and increase working speed and efficiency.

T & T AUDIT is placed in the current requirements of the profession in this regard.



External reporting



Holding regular international subsidiaries prepare for group reporting packages used in strengthening international accounts.

Generally prepared under IFRS, packages vary from one society to another depending on the specific industry, country, group-specific policies.



For accounting, drafting such a package is a professional challenge. Beyond the Romanian accounting skills needed, request packets towards the differences between management accounting systems, accounting policies, currencies and languages.

T & T AUDIT has the necessary experience in preparing, auditing, nurse, design, implementation of such packages.



Another specific challenge that manages a T & T AUDIT for most clients is the preparation of certain reports in English for the consolidated auditors at the headquarters of Groups (Planning Memorandum Completion Memorandum Management Letter Highlights Memorandum Audit Report).



MANDATORY REQUIREMENTS FOR AUDITING



In the international environment, and consequently the Romanian subsidiaries of multinationals if the auditing is done generally for listing on the Stock Exchange, but often is simply a group policy imposed by shareholders.



Under Romanian law, situations in which companies are obliged to conduct a financial audit are defined by Art. 5 OMF 1752/2005 which accounting regulations adopted in Romania in accordance with European Directives, applicable from 2006.



Text of law defines two large families who require audit criteria:



(A) size criteria (defined in Art. 3 of the same law) if the closing of a financial year to meet two of three criteria:

bullet Total assets greater than EUR 3'650'000

bullet net turnover of more than EUR 7'300'000

bullet Average number of employees during the year: less than 50



(2) public companies (defined in the Order 907 of 2005)

bullet Credit Institutions

bullet insurance and reinsurance companies

bullet entities regulated and supervised by the National Securities Commission

bullet companies whose securities are traded on a regulated market

bullet companies and national companies

bullet Legal persons belonging to a group of companies and entering the consolidation by a parent who applies International Financial Reporting Standards

bullet Legal entities other than the above, the benefit of grants or loans with state guarantee.



Subsequently, Ordinance 28/2006, the transformation of leasing companies in non banking financial institution and has co-requirement for auditing financial statements of aceastora (Art. 18 (2)).



Minimum standard AUDIT



Professional standards issued by the Chamber of Financial Auditors Romania (Hot. 44/2005) A financial audit required during a financial year, performance of audit procedures defined in the decree that minimum. Browse Such rules involve, according to the decision of the CAFR, the normal workload of 240 hours for one financial year, which can be reduced up to 180 hours if less complex entities.



In establishing an audit cost, start from the minimum volume of work, plus additional work according to the specific company: significant stocks, or complex reporting systems (packages), or more outlets / subunits, or auditing the page you need to cover the previous year, or complex systems cost, size, etc..



RELATED SERVICES



Audit profession is governed by ethical rules which impose conditions of independent professional auditors to ensure objectivity.

Within these restrictions, the company T & T AUDIT provide tax consultancy and assistance in preparing internal and external reporting.



Besides audit services, based on credentials and professional depending on the situations and needs of customers, the company T & T AUDIT offers professional accounting, valuation of enterprise, evaluation of property, training, consultancy in the cases of mergers, acquisitions, internal procedures and budget preparation, and procedures agreed with the client assignments are configured precisely according to its specific needs.



STATUTORY CONSOLIDATION



Romanian law provides, through OMFP1752/2005 and Accounting Law 82/1991 republished, as Romanian companies that own subsidiaries to prepare and submit consolidated balance sheet beginning with the year ended December 31, 2007, the reporting deadline 30 August. The legislation is consistent with the Seventh European Directive on consolidated accounts.



It reported consolidated balance sheet if the companies go over two of the following three levels:



bulletTotal assets exceeding EUR 17,520,000

Business bulletCifra more than EUR 35,040,000

bulletNumar more than 250 employees.



This balance must be audited.



INTERNAL AUDIT



Despite the similar name, internal audit is very different from the external audit.



Relevant comparisons





Internal Audit





External audit



Coverage





Internal processes within the organization





Financial Statements



Issues of interest





Operational





Accounts



Issues of interest





Economy, efficiency, effectiveness, risks, legal, compliance, internal control, internal rules and procedures





True reflection of reality in financial statements and notes



Rewind time





Permanent





Annual



Who reports





Leadership





Associates



Transparency report





Internal documents, confidential





Audit opinion - Public Document



Analyte and internal control risk





Objective in itself, to verify the efficiency, effectiveness, and provide management unconfirmed identification of measures and optimization





Traveled to document and knowledge organization and identify risks to audit planning, can lead to confidential information management



Relationship between them





Collaborate with external auditors and provides information





Uses information from internal auditors, appreciate the quality of internal control



Fraud





One of the objectives of internal audit is to prevent, deter, identify fraud, and establish control systems to prevent fraud





Elements of fraud can take the auditor's attention during their activity, but not the external auditor's objective of identifying and reporting fraud.



Rules





Law 31/1990 republished requires companies that meet the criteria for external audit must organize the internal audit function.

Hot.CAFR 88/2007 on internal audit





explained above





Examples of internal audit procedures:



bulletVerificarea authorizing payments, purchases, discounts

bulletVerificarea organization offers to investment

bulletVerificari quality assurance systems

bulletExaminarea incidents and errors

bulletSupravegherea projects launched - for example implementation of a program

bulletAnaliza indicators - eg waste rate

bulletCentralizarea intelligence reports - such conclusions after inventory

bulletProceduri against fraud - for example verification of cash transactions, transactions with affiliates, information gathering

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