Independent Audit of Special Purpose Companies
Let us determine the scope of the audit that suits your company’s needs together. As AG Audit, we offer Independent Audit of Special Purpose Companies in various fields in line with your company’s needs. Unlike independent audits of financial statements, we provide special purpose audits or reviews for report users when certain financial information requires to be reported.
Here are some of the services we provide within the scope of Special purpose independent audit or review:
- Audit the compliance of the set of financial statements attached to the tax statement with tax-based accounting regulations,
- Audit the compliance of cash collections and cash payments of enterprises with accounting principles in order to present cash flow information to the creditors,
- Audit of compliance with the financial reporting rules determined by the relevant institution whether or not the obligations imposed by the institution are fulfiled
- Audit the compliance of contracts such as bonds, loans and grant contracts with financial reporting rules,
- Checking the accuracy of the financial turnovers of the tenants operating in the shopping mall who signed the rental agreement based on the turnover declared to the shopping mall management and/or owners within the periods specified in the rental contracts,
- Audit of compliance with the regulations determined by the institution in order to fulfil the obligations of enterprises providing incentives, support and financing.
What is Independent Auditing?
Independent audit is conducted in order to obtain sufficient and appropriate audit evidence that can ensure the compliance and accuracy of the annual financial statements and other financial data of the enterprise with the criteria determined specifically for each. The most appropriate answer to the question of what is independent audit is the application of all auditing methods stipulated in generally accepted independent auditing standards as well as thorough evaluation and reporting of financial books, records and documents of the enterprise.
What are the Purposes of Independent Audit?
Independent audit of financial statements… It enables the independent auditor to express an opinion on whether the financial statements fairly and accurately demonstrate the actual financial situation of the enterprise and the results of its operations comply with financial reporting standards, in all material respects.
What are the Independent Audit Principles?
Independent auditors examine the validity of the evidence with a sceptical approach and check if the financial evidence contradicts the statements of the business management and other provided information and documents. An independent audit re-designs the financial statements to establish reasonable assurance to avoid any material misstatement. ”Reasonable assurance” means a collection of sufficient and proper auditing evidence to conclude that the financial statements as a whole are error-free in quality and quantity.
How to Perform Independent Audit?
An independent auditor may use different auditing methods to reach sufficient information and therefore, a satisfying conclusion. The following techniques are applied within the scope of the Regulation of Independent Audit. It is noteworthy that these techniques should be applied with great attention taking the enterprise’s specific conditions into account.
Physical examination technique: It is used to verify the presence of materials. Availability of stocks, availability of salaried employees and operating activities are evaluated under physical examination.
Verification technique: It involves the process of confirming information or existing conditions by third parties.
Recalculation technique: It means checking the mathematical accuracy of documents and records which includes auditing different accruements, such as interest accruement as well as summaries of exclusive accounting records and calculations made by customers.
Document review technique: It refers to the internal or external examination of written or electronic documents and the documents issued through other media.
Information gathering and review technique: It means obtaining internal and external financial or non-financial information through expert persons. This technique, which is blended with other techniques, is meticulously used to reach the most accurate information.
Analytical review technique: With analytical review techniques, steps based on rational relations are followed in examining financial or non-financial data. This technique includes operations such as comparison, ratio analysis and correlation between reciprocal accounts. Thus, an independent audit report is prepared.
Who Needs Independent Audit?
- With the new Turkish Commercial Code, all stock corporations
- Banks and private financial institutions
- Public institutions
Why Independent Audit?
Laws and regulations do not demand the application of independent auditing to standard businesses. However, independent auditing has become an indispensable need for the modern business. Independent audit can be used to obtain transparent, conceivable and clear information. In company management, it can be used in order to get reliable information about shareholders, employees, lenders and investors.
Independent audit provides advantages to the audited firm, the public and the state. It provides the correct data flow to the management, and also allows the evaluation and deep-analysis of the financial statements. It shows whether the financial statements reflect the truth whilst ensuring that the business management and employees prevent false information.
AG Audit works in cooperation with experts from different sectors so that you can have your reports prepared in accordance with national and international standards. With the audit of financial statements, you can have a more prestigious position in today’s complex business environment.