Concept of financial audit
A financial audit is the performance of a set of necessary and interrelated procedures defined by the applicable auditing standards, on the basis of which the auditor’s opinion is formed.
Objective of the financial audit
The purpose of a financial audit is to enhance the level of confidence of users of a financial statement by expressing an auditor’s opinion as to whether that statement has been prepared in all material respects in accordance with the applicable financial reporting framework.
According to Art. 37. from the Accounting Act The annual and consolidated financial statements of:
1. small enterprises that, as of December 31 of the current reporting period, exceed at least two of the following indicators:
- balance sheet value of assets – 2,000,000 BGN;
- net revenue from sales – 4,000,000 BGN;
- average number of personnel for the reporting period – 50 people;
2. medium and large enterprises;
3. enterprises of public interest;
4. medium and large groups and groups in which there is at least one enterprise of public interest;
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- balance sheet value of assets as of December 31 – 1,000,000 BGN;
- amount of net income from business and income from non-business activity for the current year – 2,000,000 BGN;
- total amount of financing received in the current year and unutilized as of December 31 of the current year financing received in previous reporting periods – 1,000,000 BGN.
- the annual financial statements of non-profit legal entities, designated for the implementation of public service activities and carrying out activities under Art. 116 of the Family Code.
The registered auditor carries out his professional activity on the territory of the country, applying the principles and requirements of the applicable auditing standards at the date of undertaking the relevant audit engagement.
Certification of the results of a financial audit
The registered auditor presents the results of the performed financial audit in an audit report.
The audit report shall be prepared in writing in accordance with applicable auditing standards.
Legal framework of the financial audit
Independent Financial Audit Act and Accounting Act.
Subject of the financial audit
A financial audit is carried out on:
- annual or interim, individual or consolidated financial statements prepared in accordance with the applicable financial reporting framework;
- other financial statements or financial information.
Mandatory and voluntary audit
- A mandatory audit is the audit of the annual financial statements, insofar as this is required by law or by the law of the European Union.
5. enterprises for which this requirement is established by law.
6. the annual and consolidated financial statements of joint-stock companies and limited partnerships with shares are subject to a mandatory independent financial audit, with the exception of cases where the companies did not operate during the reporting period.
7. The consolidated financial statements and the annual financial statements of the enterprises included in the consolidation are subject to an independent financial audit.
The annual financial statements of non-profit legal entities, designated for the implementation of socially beneficial activity, when for the current year they exceed one of the following indicators:
- Any other audit, other than the mandatory one, is voluntary
Financial audit is carried out by registered auditors who are entered in the register under Art. 20 of the Law on the Independent Financial Audit.
The registered auditors within the meaning of this law are:
- audit firms.
By entrusting your accounting reporting to an external accountant, your company receives the following advantages:
- Significantly lower costs of subscription service compared to the costs of salaries and insurance of accounting staff.
- You save funds for building and maintaining an accounting office – rent, consumables, energy, etc.
- You save funds for the purchase of inventory, computers and other necessary equipment.
- You save the need to purchase licenses for accounting, Human resources and other necessary software and their continuous updates.
- In accounting practice, unconventional and complex cases often arise, which are usually beyond the capabilities of the operational, ordinary accountant. Solving such cases with a specialized external accountant is a daily routine.
- You save time and money for training and familiarization with changes and innovations in accounting and tax legislation, because the external accountant is always “on time”.
- You do not have to be responsible for deadlines and correctly processed documents and data, because the responsibility lies with the external accountant.
- Last but not least, you get a complete complex service, including various areas such as accounting, insurance, labor
Ana Petrova – managing owner
Graduated Master in Accounting and Control. With 20 years of professional experience as Chief Accountant and Financial Director in a German-Bulgarian company, a market leader in his field of activity.
Expert in the field of tax and accounting consulting. Author of articles and materials discussing important topics of tax and accounting legislation.
Responsible for business development and business processes in the accounting office. Leads and manages all projects, as well as accounting and tax consulting for clients.
He works in close contact with his clients, always managing to offer them an appropriate way and rational solutions for organizing and optimizing the company’s activities, so that they can improve their financial and accounting reporting as much as possible.
He readily accepts any challenge to lead and manage the accounting of individuals and legal entities from various spheres of modern business.
Quality accounting services at unbeatable prices!