Audit of financial reporting according to NAS

Audit of financial reporting based on National Financial Reporting Standards (NFRS) is verification of accordance with fixed criteria and generally accepted accounting principles (GAAP).

Accounting and Financial should contain reliable information about Company’s financial position/condition on reporting date, financial results of its activity and cash flows over the reporting period should be presented.

Audit of financial reporting is the most important element of general system of control conducted by owners (shareholders) over management activity.

We provide two basic types of financial reporting audit:

Obligatory audit - an enterprise should compulsorily conduct it in accordance with the law. Financial reporting results of obligatory audit are published and transferred to wide range of users: - shareholders/stockholders, creditors and regulatory agencies. For example reports of the State Commission on Securities and Stock Market, the State Property Fund of Ukraine.

Initiative audit is conducted upon a Client’s decision to ensure financial reporting reliability, verification of book-keeping conduction, its parts and also assessment of financial performance of the Company.

During audit the following aspects are examined:

• compliance of Company’s accepted forms of reporting with nature and conditions of its activity;

• sequence of application of accounting reporting forms;

• completeness of accounting reporting (including indicators of all branches’ activity, th representative offices and other subdivisions of an enterprise);

• application of regulatory acts of accounting;

• significance of information disclosure in reports.

Following the results of audit an auditor’s conclusion of the standard device (obligatory audit) as well as auditor’s report is issued. It contains auditor’s conclusions and recommendations (initiative audit).