Audit and stock-taking


Depending on the company being audited, auditing can be divided into several types: financial, tax and management. If an entity carries out an audit of that specialized entity, then it is called the company’s internal audit. If an inspection is carried out by an independent audit firm of the company being audited, then this is called external audit. The concept of self-audit was formed at the very end of the 19th century. At the end of the year, when the number of start-ups have increased, many of them needed a credit from a bank, therefore an independent auditor’s report was required to obtain a credit. In Lithuania, since 1994, the Law on Joint Stock Companies introduced an obligation to do audit for certain private limited liability companies.

An independent financial external audit discloses whether the financial statements give a true and fair view of the entity’s financial position, performance and cash flows in all respects. The audit provides an auditor’s opinion on the management of the audited entity. Such conclusions give greater weight to the reports of the financial statements of the audited entity and give more confidence to the company owners or for third parties wishing to invest or co-operate with the said company. In the course of an audit, it is also important to identify the weak points of control that the supervisor should focus on. For company shareholders and executives, this is particularly important as it can be assured that accounting is conducted in accordance with all accounting standards and the financial statements reflect a real and accurate financial condition.

  • STOCK – TAKING
  • LEGAL DOCUMENT AUDIT
  • IT AUDIT
  • INTERNAL AUDIT
STOCK – TAKING

We have many years experience in accountancy and we understand its importance for the company’s financial management, therefore it is very important to audit stocked items in warehouses or retail shops. It provides important information about how good stocked items are handled and protected. After comparing new stock-taking results with current stock list it is possible to determine whether there is any loss of goods, damaged or even missing goods, then make appropriate changes in your current stock list with latest details stock-taking details.

Even well-handled companies must periodically verify that the actual balance of assets and liabilities corresponds well. Because the data in the accounting program, do not always correspond to the actual quantity of goods, so regular goods inventory is necessary. This is governed by the laws of the Republic of Lithuania and the (Government in 2008. April 17. Approved inventory rules, order no. 370)

Stock-taking is necessary, in the following cases:

  • The company is being sold, reorganized or liquidated;
  • Change of materially responsible persons;
  • There have been theft, fire, failures, disasters or other situations;
  • Before the conclusion of the financial statements.

Stock taking can be carried out according to various parameters: a) for an individual asset or product type, b) asset / item location, c) materially responsible person. To ensure continuous operation of the company, it is very important to choose the right time for stock taking procedure (e.g. not to interfere with company buyers and sellers, not to cause delays in the movement of goods and so on). Therefore this procedure must be performed quickly and accurately. To do this we use modern technology and software, which maximizes the performance of stock taking procedure, it allows us to accomplish stock taking quickly, accurately and present results in the desired form.

Stock taking benefits
If you will use our services, you won’t need to hire any additional staff or to put additional strain on current employees. We are working in order to achieve your trust and respect, while helping you reach your goals. When you order stock-taking services from us, required quantity and qualification specialists will come at your indicated warehouse or retail shop for stock taking procedure – thus saving you time and money. Only highest qualification specialists will supervise stock taking procedure from the beginning till the end.

LEGAL DOCUMENT AUDIT

It is a comprehensive company’s legal verification usually carried out in the process of business development, mergers, purchase or sale of a company, company‘s reorganization or disputes between the shareholders. Due diligence includes audit of the company incorporation, operation documents, transactions, liabilities, guarantees, risks, business partners and customers, contracts, acquisitions and other significant aspects of the company. Particular attention should be paid to the issues pre-agreed with the customer. Upon completion of the work, a detailed legal audit report should be submitted. When implementing due diligence, usually actual or potential threatened litigation, the agreements with the company’s financiers, labor issues and other aspects relevant to a particular case are verified.

When implementing legal audit of documents, we render the following services:

  • Gathering of data on the company profile, activity, market position, business plans;
  • Analysis of the company organizational structure and management: legal status of structure entities, equity structure, investment to other companies, management bodies, belonging to unions;
  • Analysis of compliance with law requirements: legal acts regulating activity of the company;
  • Analysis of labor relationship: organizational/ personnel structure and changes within the recent year;
  • Data on collective and individual labor relationship: exclusive conditions of collective and labor agreements, labor disputes; data on actual violation of requirements of work safety.

Main clients and suppliers, specific relationship with clients or suppliers , reductions of sales and purchases:

  • Analysis of contractual obligations;
  • Analysis of disputes: existing and potential claims, existing and potential legal actions;
  • Any inspections of the company activity performed by control authorities and sanctions applied;
  • Analysis of intellectual property: data on the company rights to computer programs, purchased accounting and information systems, other intellectual property, existing licenses, patents, agreements, disputes.
IT AUDIT

Information systems audit is a process of gathering and evaluation of evidence that allows to decide whether the information system provides for security of assets, data integrity, and efficient achievement of the organization’s objectives and the rational use of resources. Information systems have a significant impact on the success of the company activity. The quality of the company’s operating and calculation of financial indices depend on information systems; therefore, internal auditors, in assessing the company’s activities , have to assess the use of an information system.

Only an effective and well -organized internal control may ensure the company’s information security, confidentiality, and availability. In order to manage and control the potential risks of use of information systems, general information systems control means should be used. Information systems audits are mainly intend to assess the company’s information system in two ways: internal control of the information system and management and use of information systems according to the selected evaluation criteria.

INTERNAL AUDIT

It is important for each company to effectively operate and ensure appropriate internal control.

We offer the following services for our clients:

  • Creation of effective management systems to help improving the work of boards, chairpersons and directors;
  • Management of operational risk and opportunities to increase the value of the company for shareholders;
  • Evaluation of the company information systems and submission of proposals;
  • Evaluation of the company internal control systems and submission of offers;
  • Creation of effective audit and control systems;
  • Evaluation of performance effectiveness and reporting;
  • Set up of high performance culture and business ethics system.
Audit and stock-taking
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