1. Under what circumstances should an external audit be conducted?
Annual report audit
Generally speaking, in the annual financial report audit, professional financial and taxation institutions will be entrusted to do external audit. After accepting the entrustment of the company, the external audit will check the company's annual financial data, and finally, after obtaining sufficient audit data, issue audit reports and suggestions on the company's entire annual financial data.
2. Annual inspection audit of industry and commerce
The annual industrial and commercial inspection is the annual industrial and commercial tax inspection of the company. The industrial and commercial level of the company needs a professional external audit team to audit and issue a true and fair annual audit report. In order to ensure the accuracy of industrial and commercial annual inspection information, general enterprises will actively cooperate with external audit to do verification work.
3. Audit of net assets
Net assets are all done together with the company's asset evaluation, because net assets are a very important item in the company's asset category. Net assets audit is to audit and verify the company's disposable assets, which is generally used for asset liquidation and account unsealing of enterprises.
4. Bankruptcy liquidation audit
Liquidation audit generally refers to the bankruptcy of the company due to various business problems, so external audit needs to make statistics on the liquidation of the company's creditor's rights and debts, profits and losses during liquidation, and the realization of the company's assets. To ensure that the liquidation enterprise can carry out liquidation business legally and fairly, and make a fair audit conclusion on the final liquidation result.
5. Audit of financial revenue and expenditure
The audit of income and expenditure is conducted by the company's external audit team. They all check the company's internal financial books, accounting statements and other materials in accordance with national laws and regulations, audit the financial revenues and expenditures that have occurred, ensure that the financial revenues and expenditures are true, effective and legal, and finally make a fair and objective audit conclusion.
6. Economic benefit audit
Economic benefit audit is usually an accounting of the company's business activities and financial activities. By auditing the company's operating results, capital construction and other unit funds, we can judge the operating conditions and explore ways to improve the company's economic benefits.
7. Why should we conduct an external audit?
Because external audit controls the internal risks of enterprises through specific methods, generally speaking, the internal audit of companies plays an important role in company evaluation, and external audit is used to find the defects of internal audit, so internal audit plus external audit can help companies solve most problems.
What are the advantages and disadvantages of external audit?
The advantage of external audit is that it will not be subject to internal pressure, which will often lead to inaccurate audit results. External audit can find out the shortcomings of internal audit more objectively and improve it.
The disadvantage of external audit is that we don't know enough about the company's internal organization and the company's production and operation process, so we will encounter many difficulties when doing specific audit business.
summary
The above are the circumstances under which the company conducts external audit, why it conducts external audit, and the quality of external audit. Although the company has internal audit, it can cope with some daily verification, but with the intervention of external audit, the audit results can be more true and accurate.
Legal basis:
Article 62 of the Company Law of People's Republic of China (PRC), a one-person limited liability company shall make financial and accounting reports at the end of each fiscal year, which shall be audited by an accounting firm. Article 164 of the Company Law of People's Republic of China (PRC), a company shall prepare financial and accounting reports at the end of each fiscal year, which shall be audited by an accounting firm according to law. Financial and accounting reports shall be prepared in accordance with laws, administrative regulations and the provisions of the financial department of the State Council.