“The financial audit is the investigation conducted so that the financial auditors formulate an opinion on the financial statements in accordance with the International Auditing Standards of the International Federation of Accountants (IFAC)” – Definition of the Chamber of Financial Auditors of Romania.
The objectives of the financial audit are to highlight the assets, liabilities, financial position, profit or loss in the annual financial statements, to express an opinion on whether the financial statements are a true and fair picture of the company. At the same time, our auditors’ conclusions will lead to a more efficient way to use the accounting information and will show the performance of the information, organisation and internal control systems.
The financial audit can be divided into three types, depending on how it is organised:
Internal audit
This type of financial audit is conducted by own staff, whom is secured a degree of independence so that the result is be objective.
External audit
This is actually the real financial audit as it is conducted by competent persons who are independent from the organisation. Therefore the result provided is impartial and accurate.
Governmental audit
The audit exercised by the specialists of the Ministry of Public Finance on various programmes
The financial audit includes:
1. Financial performance indicators
Financial performance indicators
2. Summary of the accounting and financial management methods used
- Turnover analysis
- Cash flow analysis
- Expense analysis
- Price/charge analysis
- Operational risk analysis
3. Profitability analysis
- Profit and loss analysis
- Structural and factorial profit analysis
- Analysis of the economic and financial balance
- Analysis of the correlation between receivables and liabilities
4. Resource management
- Human resources management:
o Staff dynamics
o Working time usage
o Productivity indicators - Management of fixed assets:
o Dynamics and structure of the technical potential
o Assessment of the efficiency in using the technical potential - Management of material resources:
o Purchase market
o Purchase schedule
o Inventory management
o The impact of material resource usage on the main economic and financial indicators
5. Financial performance diagnosis
Financial performance diagnosis
- Human resources management:
