Importance of the Audit Opinion
- 2024-11-27
Selma Məmmədova- Blogs
Audit is the independent verification of the accuracy and correctness of financial statements and accounting records in business entities.
Audit service refers to conducting inspections, analyses, expert evaluations, and issuing written opinions in the field of financial and economic activity, as well as setting up accounting systems, confirming the accuracy of report indicators, and providing other services on a contractual basis in business entities.
Business entities are free to choose their auditor. Owners are responsible for providing all documents, registers, and reports required for the audit accurately and correctly. They are also obligated to provide written or oral explanations upon the auditor’s request.
The following types of audits exist:
-
Mandatory and voluntary;
-
Operational audit of business activity;
-
Internal and external;
-
Financial statement audit and special audit;
-
Compliance audit;
-
Mandatory audit commissioned by government authorities;
-
Operational;
-
Other types of audit services.
In what forms is an audit conducted?
Audit can be conducted in two forms:
-
Mandatory audit – carried out in cases prescribed by law, as well as for entities that must publish their financial and economic reports;
-
Voluntary audit – carried out at the initiative of the business entity in all other cases.
At the end of the audit inspection, an audit opinion is issued by the auditor or audit organization.
An audit opinion is an official document with legal significance, signed and stamped by an independent auditor or audit organization, expressing their assessment of the accuracy of the entity’s annual financial statements, financial condition, general state of accounting, and the legality of financial and economic transactions.
Additionally, the audit opinion handover certificate is a document issued by the auditor or audit organization that confirms the fulfillment of the contract terms. The audit opinion is prepared in the prescribed format.
The activities of audit organizations are regulated by the Law of the Republic of Azerbaijan “On Audit Services.” Their oversight is carried out by the Chamber of Auditors.
Ideovate Consulting has been a member of the Chamber of Auditors since 2019. As a result of this membership, we offer audit opinion services to both individuals and legal entities. In addition, you can benefit from our accounting, legal, HR, and tax services.