Accounting Due Diligence
At ETL ILIA, we offer an accounting audit service. We are experts in accounting, we pay special attention to the analysis of assets and liabilities, and we propose improvements based on the data obtained.
We are part of ETL GLOBAL, an international network of more than 1,000 professional law firms, a sample that confirms our quality, professionalism, and good results.
What does our service consist of?
1. Accounting Audit
To take advantage of the service, it is advisable to know the main characteristics of an audit focused on accounting, also known as accounting due diligence. Its objective is to determine the economic status of a company, whether to acquire it, invest in it or present solid accounts.
2. What is an Accounting Audit?
The goal of this service is to certify and give truth to the accounts presented by a company, which is carried out periodically and follows high-quality standards. Thus, those interested (clients, investors, administrations, and other organizations) are offered helpful information. In addition, it seeks to alert about situations of economic risk and to detect possible fraud.
It is verified that the accounting data provided by the company are correct and that they adapt to the corresponding financial reporting regulatory framework (International Financial Reporting Standards in the case of the European Union and US GAAP in the United States, to give two examples. relevant).
Audits are required to meet several requirements. On the one hand, a comprehensive review of the accounts will be carried out to check whether the resources are used efficiently and effectively. On the other hand, the fidelity of the reports presented by the company will be reviewed. In addition, the auditor will be independent, which will avoid drawing dishonest or fraudulent conclusions. Thus, the process is entirely legitimate, clear, reliable, and true to reality.
3. Benefits of an audit
The proper functioning of a company affects many people who come to depend on it. This is the case for workers but also for both private and institutional investors. Showing accounts verified by a good audit is proof of transparency, honesty, and confidence that a job well done is being done.
In addition, compliance with current accounting regulations is guaranteed. If a severe error occurs, it will be necessary to bear penalties in the form of a fine, which could damage the company’s image before creditors, clients, and investors.
The commission of fraud is also avoided. An auditor with experience in the sector can detect them with relative ease, essential to deal with them quickly and effectively. Perhaps there was only an error in the accounting, but the appropriate measures can be taken if indications of crime are detected. This is because it will be detected how it has been gestated and developed.
Another benefit to keeping in mind is bug fixes. No one is perfect, so it is necessary to have audit experts verify that no mistakes are made. These would tarnish a company’s reputation, could lead investors to make wrong decisions, and the administrations could interpret a fraud if the error is serious. The work of an auditor manages to save us these types of problems.
4. Conclusions
Reviewing the statements of the accounts, balance sheets, evolution of equity or cash flows is essential to demonstrate that a company is profitable. An accounting audit is a crucial service to ensure reliability, find latent problems and propose effective solutions. In addition, the process must be carried out independently to ensure success. At ETL ILIA, we are specialists in auditing and accounting for all types of companies, with extensive experience accumulated over the years. We bet on a job well done.