accounting financial audit

Importance in audit activity has a study and evaluation financial condition and solvency of the economic entity. Carrying out a mandatory audit financial statements, the audit firm is obliged to check its financial condition and evaluate solvency, arguing with a number of indicators confirming the auditor's conclusions.

The information obtained in the course of the study is important both for the heads of the audited entity and for third parties who will use the audit report.

When conducting an audit of the financial condition, it is necessary to identify signs of the possibility of terminating the activities of the enterprise and to establish whether the entity becomes a potential bankrupt and whether it will not become one within three months after the audit.

Analysis and audit of the financial condition and solvency should also be carried out in the process of internal audit in order to develop tactics for specialists.

The financial condition of an enterprise is its assets and liabilities, reflecting the availability and placement of resources on a certain date.

The main sources of information for the audit of the financial condition of the enterprise is the balance sheet of the enterprise (Form No. 1 of annual and quarterly reporting). Its importance in this is so great that the analysis of the financial condition is often called the analysis of the balance sheet. Together with the balance sheet, the source of data for the audit is the following annual reporting: a report on financial results and their use (Form No. 2 of annual and quarterly reporting); report on the financial and property condition of the enterprise (form No. 3). An analysis of the financial condition, which is based on financial statements, is carried out mainly by an external audit, i.e. specialized audit firms, owners or government agencies.

Accounting reporting forms on the activities of the enterprise allow external users to unbiasedly assess the financial condition of the enterprise even without using information that is a trade secret.

An external audit of the financial condition of an enterprise may resort to research, the results of which are important not only for assessing potential partners of a particular enterprise, but also for other users of reporting. It is not all the same to the enterprise, according to what indicators possible contractors, shareholders, creditors will evaluate its financial condition. Therefore, the relationship between internal and external audit is necessary, and this is achieved with the help of specific methods and standards.

Audit of the financial condition of the enterprise includes:

• -general assessment of the financial condition and its change for the reporting period;
• -analysis of the financial stability of the enterprise, liquidity of the enterprise (balance sheet), coefficients of financial mobility.

An audit of the financial condition begins with determining the solvency of the enterprise. A solvent company is one whose current assets (inventory, cash, receivables and other assets) are greater than or equal to its external debt (liabilities). The external debt of the enterprise is determined according to the data of sections II and III of the liabilities side of the balance sheet. It includes short-term, medium-term and long-term loans, as well as accounts payable.

Comparing current assets with external liabilities, the auditor must take into account that the presence of stocks in the enterprise (especially state-owned) does not determine the real solvency, because in conditions market economy inventories of work in progress, finished products and other inventory items in case of bankruptcy of the enterprise may not be realizable for repayment of external assets.

Marketable assets include cash and accounts receivable and, to a certain extent (except for surpluses and stale inventories), inventories. Therefore, it is necessary to make an updated calculation of solvency, i.e. to determine the correspondence of fast-moving assets to external debt.

The auditor establishes an increase or decrease in the level of solvency of the enterprise by changing the indicator of working capital ( working capital), which he defines as the difference between all current assets and short-term debt.

Working capital consists of those types of property that are completely located at the enterprise during one financial year and carry out a full turnover or several turnovers. The sources of its formation are: an increase in net income, long-term liabilities, share capital etc. It must be taken into account that the most reliable partner is an enterprise with a large amount of working capital, as it can meet its obligations and increase the scale of its activities. The benchmark for optimizing the size of working capital is its amount, which is equal to half of short-term liabilities. attraction borrowed money to implement economic activity enterprises can have different efficiency, which depends on the rational formation of the structure of sources of funds used.

Market economic conditions force enterprises to urgently pay off short-term debt at any time. The ability of an enterprise to pay off term liabilities is determined by an indicator that characterizes the ratio of working capital to short-term liabilities. This ratio must be equal to one. Both low and high ratios are unfavorable.

Balance liquidity and relative indicators (financial ratios) characterize the external manifestation of the financial condition, due to its essence. Deepening the analysis based on accounting data contributes to solving the problems of internal audit. Thus, the study of financial stability factors necessitates an internal audit of reserves and expenses, and the balance sheet liquidity assessment is clarified internal audit through the analysis of receivables and payables.

Liquidity is the ability of working capital to be converted into cash necessary for normal financial and economic activity. Auditors present their opinions to banks, suppliers, shareholders and other customers. Liquidity is determined by the ratio of all current assets to short-term liabilities. It should be noted that when the ratio of current assets to short-term debt is less than one, this means that there is nothing to pay for external obligations. In cases where current assets are equal to short-term liabilities, i.e. 1:1 ratio, the entrepreneur does not have a free choice of solution. If the ratio is high, the company has a large amount free funds, uses expensive assets, i.e. profit from current assets is higher interest rates for borrowed funds.

The auditor determines the liquidity of the enterprise based on the total amount of current assets. However, extraordinary circumstances can also affect the liquidity of an enterprise. In such cases, the auditor must calculate the liquidity ratio by maturity, which will determine whether the company will be able to return short-term debts. In this case, the ratio of fast-moving assets of cash is used, accounts receivable and short term liabilities.

The rational formation of sources of funds by the auditor is determined by their structure. The auditor should pay the main attention to own means (own capital).

The assessment of the structure of sources of funds, which the auditor has to give to banks, creditors, concerns a change in the share own funds in the total amount of sources of funds in terms of financial risk when concluding agreements, contracts. The risk increases when the share of own funds (capital) decreases.

The auditor, after studying the structure of the sources of funds of the enterprise, provides information to banks, creditors on the expansion or curtailment of the enterprise's activities. A decrease in short-term loans and an increase in equity may be evidence of the winding down of an enterprise. However, it is impossible to come to such a conclusion at the same time, since part of these funds may be under the influence of other factors - interest rates for loans and dividends. The reference point for the auditor's conclusion about the expansion or curtailment of the enterprise's activities may be retained earnings (in the balance sheet, the difference between the amount of balance sheet profit and the use of profit - section 1 of the asset and liability).

As already noted, the optimal structure of finance is considered to be their formation at the expense of own funds only in terms of fixed capital (fixed assets). For this purpose, the investment indicator (the ratio of own funds to fixed capital) is calculated. The enterprise will be viable if it returns all borrowed funds on time.

The auditor determines the ability of the enterprise to fulfill its obligations by analyzing the structure of finances. Long-term assets must be funded by long-term capital, not necessarily equity. It is considered rational when the fixed capital is at least 50% financed from equity and 50% from long-term loans. For banks and creditors, this distribution of capital is positive, since there is little risk of bankruptcy if the company has a large equity capital. For an enterprise, this means using its own finances, which it is advisable to invest in the expansion of its own production or invest in the acquisition valuable papers, provide loans to other enterprises, etc. In this case, the alienation of equity capital must be replenished with borrowed funds. The definition of financial strategy is associated with the calculation of the effectiveness of the listed activities, which must be performed by auditors.

Accounts receivable and inventories are used in the calculation of solvency indicators, liquidity of working capital (funds). Depending on how quickly they turn into cash, the financial condition of the enterprise and its solvency are determined. For this purpose, the turnover of accounts receivable is determined, which is calculated as the ratio of sales proceeds to the amount of debt. The higher this indicator, the faster the receivables turn into cash.

The auditor should especially carefully examine the organization of settlements with buyers, since the volume of sales of products, the state of receivables, and cash depend on this.

Replenishment of cash at the enterprise depends on the turnover of stocks of inventory items, which is calculated as the ratio of the cost of goods sold to the average annual stocks. The higher the turnover rate, the faster inventory turns into cash. The auditor should make such calculation in dynamics for several reporting periods.

For the purpose of the normal implementation of production and marketing of products, stocks must be optimal. The presence of smaller, but more mobile inventory means that a smaller amount of the enterprise's cash is in inventory. The presence of large stocks indicates a decrease in the activity of the enterprise regarding the production and sale of products.

Thus, when checking the financial condition of an enterprise, the auditor examines not only the actual stability, solvency and liquidity of the enterprise, but also the prospect of increasing business activity and economic efficiency.

The check is not a punitive function, its goals are multifaceted. For example, an audit will help identify errors that have not been noticed for years, give an idea to simplify work, help make strengths even more effective, and completely eliminate weaknesses.

Holding audit on the designated topic consists of many sections and stages. There are special ones:

• Formulas.
• Algorithms.
• Coefficients.

Everything is based on reporting, primary documentation.

Performing an audit of the financial condition of the organization

"Starting Point" - Chief accounting document- balance. Moreover, the conclusions will be based on the state of the balance sheet items “before” and “after”. That is, the corrected final version will be proposed by the auditors.

The result of the audit of the financial condition of the organization is an audit report, signed by both parties, if the audited party agrees with the conclusions.

Entrust the performance of the check to certified professional auditors, audit firms. It is good if these are organizations with many years of experience, such as Hold-Invest-Audit.

Checks with "Hold-Invest-Audit"

At a small enterprise, an audit can be carried out even manually, but it is more convenient and, most importantly, more efficient to do this with the assistance of specially designed programs.

The company "Hold-Invest-Audit" uses the latest software from trusted developers. Specialists follow a clear algorithm, apply universal verification methods. The main goal is to be aware recent changes in the legislative and economic spheres.

A new version: Federal Law of December 30, 2008 No. 307-FZ "On Auditing"

This Federal Law defines the legal basis for the regulation of audit activities in Russian Federation.

Article 1. The concept of audit activity

1. Audit activity, audit- entrepreneurial activity under independent verification accounting and financial (accounting) statements of organizations and individual entrepreneurs(hereinafter referred to as audited entities)
2. The audit is carried out in accordance with this Federal Law, other federal laws and other regulatory legal acts on the conduct of audit activities issued in ϲᴏᴏᴛʙᴇᴛϲᴛʙ and with this Federal Law.
3. The purpose of the audit will be to express an opinion on the reliability of the financial (accounting) statements of the audited entities and ϲᴏᴏᴛʙᴇᴛϲᴛʙand the accounting procedures of the Russian Federation legislation. It should be noted that for the purposes of this federal law reliability is understood as the degree of accuracy of financial (accounting) reporting data, which allows the user of ϶ᴛᴏth reporting, based on its data, to draw correct conclusions about the results of economic activity, the financial and property status of the audited entities and make informed decisions based on these conclusions.
4. The audit does not replace state control over the reliability of financial (accounting) statements, carried out in accordance with the legislation of the Russian Federation authorized bodies state power.
5. Auditing organizations and entrepreneurs carrying out their activities without forming a legal entity (hereinafter referred to as individual auditors) may provide audit-related services.
6. For the purposes of this Federal Law, audit-related services mean the provision by audit organizations and individual auditors of the following services:
   1. setting, restoring and maintaining accounting records, drawing up financial (accounting) statements, accounting consulting;
   2. tax consulting;
   3. analysis of financial and economic activities of organizations and individual entrepreneurs, economic and financial consulting;
   4. management consulting, incl. associated with the restructuring of organizations;
   5. legal advice, as well as representation in court and tax authorities on tax and customs disputes;
   6. automation of accounting and introduction of information technologies;
   7. valuation of property, valuation of enterprises as property complexes, as well as entrepreneurial risks;
   8. development and analysis investment projects, drawing up business plans;
   9. conducting marketing research;
   10. conducting research and experimental work in the field related to auditing, and disseminating their results, incl. on paper and electronic media;
   11. training in accordance with the procedure established by the legislation of the Russian Federation for specialists in areas related to auditing;
   12. provision of other services related to audit activities.
7. Audit organizations and individual auditors are prohibited from engaging in any other business activity, except for auditing and providing related services.

Article 2. Legislation of the Russian Federation and other acts on audit activity

1. Auditing activities are carried out in accordance with this Federal Law and other federal laws adopted in ϲᴏᴏᴛʙᴇᴛϲᴛʙ and with it, regulating relations arising in the course of auditing activities.
   

   The norms of the legislation of the Russian Federation on auditing activities, contained in other federal laws, must comply with this Federal Law.

   Peculiarities legal status audit organizations that carry out audits of agricultural cooperatives and unions of these cooperatives are determined by the Federal Law "On Agricultural Cooperation".

2. Relations arising in the course of audit activities may also be regulated by decrees of the President of the Russian Federation, which should not contradict this Federal Law and other federal laws.
3. Based on and in pursuance of this Federal Law and other federal laws, decrees of the President of the Russian Federation, the Government of the Russian Federation has the right to adopt resolutions containing the norms of the legislation of the Russian Federation on auditing. Material published on http: // site
4. In the event of a conflict between a decree of the President of the Russian Federation or a resolution of the Government of the Russian Federation and this Federal Law or another federal law, this Federal Law or the applicable federal law shall apply.

Article 3 Auditor

1. The auditor will be an individual who meets the qualification requirements established by the authorized federal body and has an auditor's qualification certificate.
2. The auditor has the right to carry out audit activities as an employee of an audit organization or as a person engaged by an audit organization to work on the basis of a civil law contract, or as an individual entrepreneur carrying out this activity without forming a legal entity.
3. An individual auditor has the right to carry out auditing activities, as well as provide audit-related services. An individual auditor is not entitled to carry out other types of business activities. Material published on http: // site

Article 4. Audit organization

1. Audit organization - commercial organization performing audits and providing audit-related services.
2. The audit organization carries out auditing activities after obtaining a license on the terms and in the manner prescribed by this Federal Law and the legislation on licensing certain types of activities. Material published on http: // site
3. An audit organization may be created in any organizational and legal form, with the exception of an open joint stock company.
4. At least 50 percent of the personnel of the audit organization must be citizens of the Russian Federation permanently residing on the territory of the Russian Federation, and if the head of the audit organization is a foreign citizen, at least 75 percent.

   Clause 5 of Article 4 shall enter into force after two years from the date of entry into force of this Federal Law (Clause 1 of Article 22 of this document)

5. The staff of the audit organization must consist of at least five auditors.

Article 5. Rights and obligations of audit organizations and individual auditors

When conducting an audit, audit organizations and individual auditors have the right to:

1. independently determine the forms and methods of conducting an audit;
2. check in full the documentation related to the financial and economic activities of the audited entity, as well as the actual presence of any property recorded in the ϶ᴛᴏth documentation;
3. receive explanations from the officials of the audited entity orally and writing on issues that arose during the audit;
4. refuse to conduct an audit or to express his opinion on the reliability of the financial (accounting) statements in the audit report in the following cases:
   • non-submission by the audited entity of all necessary documentation;
   • identification during the audit of circumstances that have or may have a significant impact on the opinion of an audit organization or an individual auditor on the degree of reliability of the financial (accounting) statements of the audited entity;
5. exercise other rights arising from the essence of legal relations defined by the contract for the provision of audit services, and not contradicting the legislation of the Russian Federation and this Federal Law (as amended by Federal Law No. 164-FZ of 14.12.

When conducting an audit, audit organizations and individual auditors are required to:

1. to carry out an audit in accordance with the legislation of the Russian Federation and this Federal Law;
2. provide at the request of the audited entity necessary information on the requirements of the legislation of the Russian Federation regarding the conduct of an audit, as well as on regulations the Russian Federation, on which the comments and conclusions of the audit organization or individual auditor are based;
3. within the period established by the contract for the provision of audit services, transfer the audit report to the audited entity and (or) the person who entered into the contract for the provision of audit services;
4. ensure the safety of documents received and compiled during the audit, not to disclose their content without the consent of the audited entity and (or) the person who entered into the contract for the provision of audit services, except as otherwise provided by the legislation of the Russian Federation;

Article 6

1. When conducting an audit, the audited entity and (or) the entity that has entered into an agreement for the provision of audit services shall have the right to:
   1. receive from an audit organization or an individual auditor information about the legislative and regulatory acts of the Russian Federation, on which the conclusions of an audit organization or an individual auditor are based;
   2. receive an audit opinion from an audit organization or an individual auditor within the period specified in the contract for the provision of audit services;
   3. to exercise other rights arising from the essence of legal relations defined by the contract for the provision of audit services, and not contradicting the legislation of the Russian Federation.
2. When conducting an audit, the audited entity and (or) the entity that has entered into an agreement for the provision of audit services must:
   1. conclude contracts for the conduct of a mandatory audit with audit organizations within the time limits established by the legislation of the Russian Federation;
   2. create conditions for the audit organization (individual auditor) for the timely and complete audit, assist audit organizations (individual auditors) in the timely and complete audit, provide them with the information and documentation necessary for the audit, give at the oral or written request of the auditors or audit organizations comprehensive explanations and confirmations in oral and written forms, as well as request information necessary for the audit from third parties;
   3. not take any action to limit the range of issues to be clarified during the audit;
   4. promptly eliminate violations of the rules of accounting and preparation of financial (accounting) statements identified by auditors during the audit;
   5. ϲʙᴏ pay for the services of audit organizations (individual auditors) in ϲᴏᴏᴛʙᴇᴛϲᴛʙii with an audit contract, incl. in cases where the conclusions of the audit report do not agree with the position of the employees of the audited organization, as well as in case of incomplete performance of work by the auditors for reasons beyond their control;
   6. perform other duties arising from the essence of the legal relationship defined by the contract for the provision of audit services, and not contradicting the legislation of the Russian Federation.

Article 7. Mandatory audit

1. Mandatory audit- annual mandatory audit of accounting and financial (accounting) reporting of an organization or individual entrepreneur.

   Mandatory audit is carried out in cases where:

   1. the organization has the organizational and legal form of an open joint stock company;
   2. organization will credit institution, the Bureau credit histories, insurance organization or mutual insurance company, commodity or stock exchange, investment fund, state off-budget fund, the source of the formation of funds of which will be the mandatory deductions provided for by the legislation of the Russian Federation, made by individuals and legal entities, the fund, the sources of the formation of funds of which will be voluntary contributions of individuals and legal entities (as amended by Federal Laws of December 14, 2001 No. 164-FZ, dated 30.12. 2004 No. 219-FZ)
   3. the volume of revenue of an organization or an individual entrepreneur from the sale of products (performance of work, provision of services) for one year exceeds 500 thousand times established by the legislation of the Russian Federation minimum size wages or the amount of balance sheet assets at the end of the reporting year exceeds by 200,000 times the minimum wage established by the legislation of the Russian Federation;
   4. the organization will be a state unitary enterprise, a municipal unitary enterprise based on the right of economic management, if the financial indicators of its activities ϲᴏᴏᴛʙᴇᴛϲᴛʙ comply with subparagraph 3 of paragraph 1 this article. It is worth saying that for municipal unitary enterprises, the law of the constituent entity of the Russian Federation may lower financial indicators;
   5. obligatory audit in relation to these organizations or individual entrepreneurs is provided for by federal law.

   By the Decree of the Constitutional Court of the Russian Federation of 01.04.2003 No. 4-P, the provision of paragraph 2 of Article 7, according to which the mandatory audit is carried out by audit organizations, is recognized as not contradicting the Constitution of the Russian Federation.

2. Mandatory audit is carried out by audit organizations. When conducting a mandatory audit in organizations, in the authorized (share) capitals of which the share of state property or property of a constituent entity of the Russian Federation is at least 25 percent, the conclusion of contracts for the provision of audit services should be carried out based on the results of an open tender. The procedure for holding such competitions is approved by the Government of the Russian Federation, unless otherwise provided by federal law (as amended by Federal Law No. 164-FZ of December 14, 2001)
3. The audit of audited entities, whose financial (accounting) documentation contains information constituting a state secret, is carried out in accordance with the legislation of the Russian Federation (clause 3 as amended by the Federal Law of December 14, 2001 No. 164-FZ)

Article 8. Auditor secrecy

1. Auditing organizations and individual auditors are required to maintain secrecy about the transactions of audited persons and persons who were provided with audit-related services.
2. Auditing organizations and individual auditors are obliged to ensure the safety of information and documents received and (or) compiled by them in the course of audit activities, and are not entitled to transfer the specified information and documents or their copies to third parties or disclose them without the written consent of organizations and (or) individual entrepreneurs , in respect of which an audit was carried out and services related to the audit were provided, except for the cases provided for by this Federal Law and other federal laws.
3. The federal executive body exercising state regulation of audit activity (hereinafter referred to as the authorized federal body), and other persons who have gained access to information constituting an audit secret in accordance with this Federal Law and other federal laws, are obliged to maintain confidentiality with respect to such information.
4. In case of disclosure of information constituting an audit secret by an audit organization, an individual auditor, an authorized federal body, as well as other persons who have gained access to information constituting an audit secret on the basis of this Federal Law and other regulatory legal acts of the Russian Federation, the audited entity or entity to whom services related to the audit were provided, as well as audit organizations and individual auditors have the right to demand compensation from the guilty person for damages (as amended by Federal Law No. 164-FZ of December 14, 2001)

   The documents at the disposal of the audit organization and the individual auditor, containing information about the operations of the audited entities and entities with whom an agreement has been concluded for the provision of audit-related services, are provided exclusively by a court decision to persons or state authorities of the Russian Federation authorized by this decision in cases provided for legislative acts Russian Federation about their activities. Material published on http: // site
   

   It is worth saying that the provisions of Article 9 come into force after one year from the date of entry into force of this Federal Law (paragraph 1 of Article 22 of this document)

Article 9. Rules (standards) of audit activity

1. Rules (standards) of audit activity - unified requirements for the procedure for the implementation of audit activities, execution and assessment of the quality of the audit and related services, as well as for the procedure for training auditors and assessing their qualifications.
2. The rules (standards) of audit activity are divided into:
   • federal rules (standards) of audit activity;
   • internal rules (standards) of audit activity in force in professional audit associations, as well as rules (standards) of audit activity of audit organizations and individual auditors (as amended by Federal Law No. 164-FZ of December 14, 2001)
3. Federal rules (standards) of audit activity will be mandatory for audit firms, individual auditors, as well as for audited entities, with the exception of provisions in respect of which it is indicated that they are advisory in nature.
4. Federal rules (standards) of audit activity are approved by the Government of the Russian Federation.
5. Professional audit associations have the right, if ϶ᴛᴏ is provided for by their charters, to establish for their members internal rules (standards) of audit activity, which cannot contradict federal rules (standards) of audit activity. Material published on http: // site
   With ϶ᴛᴏm, the requirements of internal rules (standards) of auditing cannot be lower than the requirements of federal rules (standards) of auditing (clause 5 as amended by Federal Law No. 164-FZ of December 14, 2001)
6. Auditing organizations and individual auditors have the right to establish their own rules (standards) of audit activity, which cannot contradict the federal rules (standards) of audit activity. Material published on http: // site
   With ϶ᴛᴏm, the requirements of the rules (standards) of auditing activities of audit organizations and individual auditors cannot be lower than the requirements of federal rules (standards) of auditing activities and internal rules (standards) of auditing activities of a professional audit association, members of which they will be (clause 6 in red. Federal Law of December 14, 2001 No. 164-FZ)
7. Auditing organizations and individual auditors, in accordance with the requirements of legislative and other regulatory legal acts of the Russian Federation and federal rules (standards) of audit activity, have the right to independently choose the methods and methods of their work, with the exception of planning and documenting an audit, drawing up working documentation auditor, audit report, which are carried out in accordance with federal rules (standards) of auditing. Material published on http: // site

Article 10. Auditor's report

1. Auditor's report - an official document intended for users of the financial (accounting) statements of audited entities, drawn up in accordance with the federal rules (standards) of auditing and containing the opinion of an audit organization or an individual auditor expressed in the established form on the reliability of the financial (accounting) statements of the audited entity and ϲᴏᴏᴛʙᴇᴛϲᴛʙ and its accounting procedures to the legislation of the Russian Federation.
2. The form, content and procedure for submitting an audit report are determined by the federal rules (standards) of audit activity. Material published on http: // site

Article 11. Knowingly false audit report

1. A knowingly false audit report is an audit report drawn up without an audit or based on the results of such an audit, but clearly contradicting the content of the documents submitted for the audit and considered by the audit organization or individual auditor during the audit.

   A knowingly false audit report is recognized as such only by a court decision.

2. Drawing up a knowingly false audit report entails liability in the form of cancellation of an individual auditor or an audit organization's license to carry out audit activities, and for the person who signed such an audit report, also cancellation qualification certificate the auditor and bringing him to criminal responsibility in accordance with the legislation of the Russian Federation.

Article 12. Independence of auditors, audit firms and individual auditors

1. An audit cannot be carried out:
   1. auditors who are founders (participants) of audited entities, their managers, accountants and other persons responsible for organizing and maintaining accounting records and drawing up financial (accounting) statements;
   2. auditors who are close relatives of the founders (participants) of the audited entities, their officials, accountants and other persons responsible for organizing and maintaining accounting records and preparing financial (accounting) statements (parents, spouses, brothers, sisters, children, as well as brothers, sisters, parents and children of spouses);
   3. audit organizations, the heads and other officials of which will be founders (participants) of the audited entities, their officials, accountants and other persons responsible for organizing and maintaining accounting and drawing up financial (accounting) statements;
   4. audit organizations, the heads and other officials of which are closely related (parents, spouses, brothers, sisters, children, as well as brothers, sisters, parents and children of spouses) with the founders (participants) of the audited entities, their officials, accountants and other persons responsible for the organization and maintenance of accounting and preparation of financial (accounting) statements;
   5. audit firms in respect of audited entities that are their founders (participants), in respect of audited entities for whom these audit firms will be founders (participants), in respect of subsidiaries, branches and representative offices of the said audited entities, as well as in respect of organizations having common with the ϶ᴛᴏth audit organization of the founders (participants);
   6. audit organizations and individual auditors who, during the three years immediately preceding the audit, provided services for the restoration and maintenance of accounting, as well as for the preparation of financial (accounting) statements by individuals and legal entities, - in relation to these persons.
2. The procedure for payment and the amount of remuneration to audit organizations and individual auditors for conducting an audit (including a mandatory audit) and providing related services are determined by contracts for the provision of audit services and cannot be made dependent on the fulfillment of any requirements of the audited entities for the content of the conclusions that can be drawn from the audit.

Article 13. Insurance during a statutory audit

When conducting a statutory audit, an audit organization is obliged to insure the risk of liability for breach of contract.

Article 14. Quality control of the work of audit organizations and individual auditors

1. Auditing organizations and individual auditors are required to establish and comply with the rules for internal quality control of their audits. The requirements for these rules are regulated by the federal rules (standards) of audit activity (as amended by Federal Law No. 164-FZ of December 14, 2001)
2. The system for checking the quality of work of individual auditors and audit organizations by external inspectors is established by the authorized federal body, which can conduct such checks both on their own and delegate the right to conduct such checks to accredited professional audit associations in relation to participants in these associations (as amended by the Federal Law of 14.12. 2001 No. 164-FZ)
3. Evasion of an external audit of the quality of work or failure by the inspectors to provide all the documentation necessary for verification or other required information may serve as grounds for the cancellation of the license to carry out auditing activities by an audit organization or an individual auditor (clause 3 as amended by Federal Law No. 164- dated 14.12.2001 FZ)
4. If, during an external audit of the quality of work of audit organizations or individual auditors, facts of systematic violation by audit organizations or individual auditors of the requirements of regulatory legal acts or federal rules (standards) of audit activity are revealed, the inspectors are obliged to report such facts to the authorized federal body. Persons guilty of such violations may be held liable under this Federal Law, up to the annulment of their auditor's qualification certificate, as well as the annulment of their license to carry out audit activities. Material published on http: // site
   (Clause 4 as amended by Federal Law No. 164-FZ dated December 14, 2001)

Article 15. Attestation for the right to carry out audit activities

1. Certification for the right to carry out audit activities (hereinafter referred to as certification) - qualification test individuals who wish to engage in audit activities.

   Certification is carried out in the form of a qualifying exam. Persons who have successfully passed the qualification exam are issued an auditor qualification certificate. The qualification certificate of the auditor is issued without limitation of its validity period.

2. Mandatory requirements for applicants for an auditor's qualification certificate will be:
   • the presence of a document on higher economic and (or) legal education received in Russian institutions of higher professional education with state accreditation, or the presence of a document on higher economic and (or) legal education received in an educational institution of a foreign state, and a certificate of equivalence of this document a Russian state document on higher economic and (or) legal education; (as amended by Federal Law No. 164-FZ of December 14, 2001)
   • at least three years of work experience in an economic or legal specialty.

   Additional requirements for applicants for obtaining a qualification certificate of an auditor, as well as the procedure for attestation for the right to carry out audit activities, the list of documents submitted together with an application for admission to certification, the number and types of certificates, programs of qualification exams and the procedure for passing them are determined by the authorized federal body.

3. It is worth saying that every auditor who has a qualification certificate is obliged, during each calendar year, starting from the year following the year of obtaining the certificate, to undergo training in advanced training programs approved by the authorized federal body. Education under advanced training programs is carried out by persons who have a license to carry out educational activities. Material published on http: // site

Article 16
It should be noted that the grounds and procedure for the annulment of an auditor's qualification certificate

1. The qualification certificate of the auditor is canceled in cases where:
   1. the fact of obtaining an auditor's qualification certificate with the use of forged documents was established;
   2. a court verdict entered into force, providing for punishment in the form of deprivation of the right to engage in audit activities for a certain period;
   3. the fact of non-compliance with the requirements of Articles 8 and 12 of this Federal Law has been established;
   4. the fact of a systematic violation by the auditor during the audit of the requirements established by the legislation of the Russian Federation or federal rules (standards) of audit activity was established;
   5. the fact of signing by the auditor of the auditor's report without carrying out an audit is established;
   6. the fact is established that the auditor does not carry out audit activities for two calendar years in a row;
   7. the auditor violates the requirement to attend advanced training programs established by Article 15 of this Federal Law.
2. The decision to annul the auditor's qualification certificate is made by the authorized federal body.

   The authorized federal body shall issue a reasoned decision to annul the auditor's qualification certificate.

3. A person whose qualification certificate has been annulled has the right to appeal against the decision of the authorized federal body to annul the auditor's qualification certificate to the court within three months from the date of receipt of the decision to annul the auditor's qualification certificate.
4. A person whose qualification certificate was canceled on the grounds provided for in subparagraphs 1.3 - 5 of paragraph 1 of this article is not entitled to re-apply for a certificate for the right to carry out audit activities within three years from the date of the decision to cancel the auditor's qualification certificate.

   A person whose qualification certificate has been canceled on the grounds provided for in subparagraph 2 of paragraph 1 of this article is not entitled to re-apply for a certificate for the right to carry out audit activities within the period provided for by a court verdict that has entered into legal force.

Article 17. Licensing of audit activities

1. Licensing of audit activities, incl. the procedure for issuing, suspending and canceling a license is carried out in accordance with the legislation of the Russian Federation on licensing certain types of activities. Material published on http: // site
2. The date of receipt by an audit organization or an individual auditor of a license to carry out auditing activities is the date of the decision to issue an auditing license.
3. In the event that, in accordance with the legislation of the Russian Federation, the provision of certain types of services related to the audit requires obtaining a license, audit organizations and individual auditors are not entitled to provide such services without obtaining a license.

Article 18

1. Functions of the federal body state regulation audit activity is carried out by the authorized federal executive body determined by the Government of the Russian Federation. It is worth saying that the regulation on the federal body is approved by the Government of the Russian Federation.
2. The main functions of the authorized federal body will be:
   • publication within its competence of normative legal acts regulating audit activities;
   • organizations developing and submitting federal rules (standards) for auditing activities to the Government of the Russian Federation for approval;
   • organization, in accordance with the procedure established by the legislation of the Russian Federation, of a system for attestation, training and advanced training of auditors in the Russian Federation, licensing of auditing activities;
   • organization of a system of supervision over compliance by audit organizations and individual auditors with licensing requirements and conditions;
   • control over compliance by audit organizations and individual auditors with federal rules (standards) of audit activity. Material published on http: // site

   Paragraph seven of paragraph 2 of Article 18 shall enter into force one year after the date of entry into force of this Federal Law (paragraph 1 of Article 22 of this document)

   • determination of the volume and development of the procedure for submitting reports to the authorized federal body of audit organizations and individual auditors (as amended by Federal Law No. 164-FZ of December 14, 2001)
   • maintenance of state registers of certified auditors of audit organizations, individual auditors, professional audit associations and training and methodological centers in ϲᴏᴏᴛʙᴇᴛϲᴛʙii with a regulation on maintaining registers approved by the authorized federal body, as well as providing information contained in the registers to all interested parties;
   • accreditation of professional audit associations.

Article 19

1. To take into account the opinion of professional participants in the audit market, an audit council is created under the authorized federal body. It is worth saying that the regulation on the audit council is approved by the head of the authorized federal body.
2. Audit Council:
   • takes part in the preparation and preliminary review of the main documents of audit activities and draft decisions of the authorized federal body;
   • develops federal rules (standards) of audit activity, periodically reviews them and submits them for consideration by the authorized federal body;
   • considers applications and petitions of accredited professional audit associations and submits ϲᴏᴏᴛʙᴇᴛϲᴛʙ recommendations for consideration by the authorized federal body;
   • performs other functions in ϲᴏᴏᴛʙᴇᴛϲᴛʙii with the regulation on the audit council. Material published on http: // site
3. Members of the audit council are approved by the head of the authorized federal body on the proposal of accredited professional audit associations, federal executive bodies, scientific organizations and higher educational institutions. The composition of the audit council includes representatives of federal executive bodies that regulate the professional activities of organizations subject to mandatory audit.
4. The representation of accredited professional audit associations in the audit council must be at least 51 percent of the total composition of the council.
5. The composition of the audit council should include representatives of state bodies, Central Bank Russian Federation (Bank of Russia) and users of audit services.

Article 20. Accredited professional audit associations

1. Accredited professional audit association - a self-regulatory association of auditors, individual auditors, audit organizations, created in accordance with the legislation of the Russian Federation in order to ensure the conditions for the audit activities of their members and protect their interests, operating on a non-profit basis, establishing internal rules (standards) binding on their members audit activities and professional data, which systematically monitors their compliance, which has received accreditation from the authorized federal body (clause 1 as amended by Federal Law No. 164-FZ of December 14, 2001)
2. A professional audit association that satisfies the requirements specified in paragraph 1 of this article, whose members will be at least 1000 certified auditors and (or) at least 100 audit organizations, has the right to submit an application for its accreditation to the authorized federal body.

   For the purposes of this Federal Law, accreditation in an authorized federal body means the official recognition and registration of professional audit associations by this body (as amended by Federal Law No. 164-FZ of December 14, 2001)

   The procedure for obtaining accreditation, refusing to issue and revoking accreditation, the rights and obligations of accredited professional audit associations are determined by the authorized federal body, taking into account the requirements of this Federal Law and the recommendations of the Audit Council. Material published on http: // site
   

3. Any audit firm and any individual auditor may be members of at least one accredited professional audit association.
4. Accredited professional audit associations have the right to:
   • participate in certification for the right to carry out audit activities conducted by the authorized federal body;
   • in ϲᴏᴏᴛʙᴇᴛϲᴛʙii with the qualification requirements of the authorized federal body to develop curricula and plans, to carry out professional training of auditors;
   • independently or on behalf of the authorized federal body to conduct quality checks of the work of audit organizations or individual auditors who are their members;
   • based on the results of the inspections, apply measures of influence to the guilty persons and (or) apply to the authorized federal body with a reasoned petition to impose a penalty on such persons (as amended by Federal Law No. 164-FZ of December 14, 2001);
   • apply to the authorized federal body for the issuance of auditor qualification certificates to applicants;
   • petition the authorized federal body to suspend and annul the auditor's qualification certificate in respect of ϲʙᴏ their members;
   • apply to the authorized federal body for the issuance, suspension and cancellation of a license in respect of their members;
   • apply to the audit council with proposals for the regulation of audit activities;
   • promote the development of the audit profession and improve the efficiency of auditing in the Russian Federation;
   • protect the professional interests of auditors in public authorities of the Russian Federation and subjects of the Russian Federation, courts and law enforcement agencies;
   • develop and publish literature and periodicals on audit and related services;
   • represent the interests of auditors in international professional organizations of auditors;
   • perform other functions determined by the authorized federal body.
5. When canceling the license to carry out auditing activities of an audit organization or an individual auditor, this audit organization or ϶ᴛᴏt individual auditor is excluded from all accredited professional audit associations that they are members of, without the right to re-enter both these accredited professional audit associations and others accredited associations for a period established by the authorized federal body, but not more than three years from the date of cancellation of the license of this audit organization or this individual auditor.

Article 21. Responsibility for violation of the legislation of the Russian Federation on audit

1. Audit organizations and their heads, individual auditors, audited persons and persons subject to mandatory audit bear criminal, administrative and civil liability in accordance with the legislation of the Russian Federation and this Federal Law.

2 - 4. Lost their power. - Federal Law of December 30, 2001 No. 196-FZ.

Article 22

1. This Federal Law, with the exception of paragraph 5 of Article 4, Articles 9 and 14 and paragraph seven of paragraph 2 of Article 18, shall enter into force one month after the date of its official publication.

   It is worth saying that the provisions of Articles 9 and 14 and paragraph seven of clause 2 of Article 18 shall enter into force one year after the date of entry into force of this Federal Law.

   It is worth saying that the provision of paragraph 5 of Article 4 of this Federal Law enters into force two years after the date of entry into force of this Federal Law (paragraph 1 as amended by Federal Law No. 164-FZ of December 14, 2001)

2. Auditor qualification certificates issued in in due course prior to the entry into force of this Federal Law, shall remain valid until the expiration of the period provided for in them. After the expiration of the specified period, they can be exchanged (without re-certification) for the certificates provided for by this Federal Law, in the manner determined by the Government of the Russian Federation.
3. Audit licenses issued in accordance with the established procedure prior to the entry into force of this Federal Law shall remain valid until the expiration of the term provided for in them. After the expiration of the specified period, new licenses may be issued in the manner prescribed by the legislation of the Russian Federation on licensing (as amended by Federal Law No. 164-FZ of December 14, 2001)
4. Establish that before the entry into force of the chapter tax code The Russian Federation, which regulates the procedure for collecting the state fee, applies the procedure for charging fees for attestation for the right to carry out audit activities and fees for issuing a duplicate of the auditor's qualification certificate, which was in force on August 1, 2001 (clause 4 was introduced by Federal Law No. 164-FZ dated 14.12.2001 )
5. Within three months from the date of entry into force of this Federal Law, audit organizations must bring ϲʙᴏ and constituent documents and personnel into ϲᴏᴏᴛʙᴇᴛϲᴛʙs with the requirements established by Article 4 of this Federal Law.
6. Propose to the President of the Russian Federation and instruct the Government of the Russian Federation, within three months from the date of entry into force of this Federal Law, to bring ϲʙᴏ and regulatory legal acts in line with this Federal Law.

President of the Russian Federation V. PUTIN
Moscow Kremlin
August 7, 2001
No. 119-FZ

The definition of financial audit means a comprehensive check of the economic condition of the organization, as well as an assessment of the prospects for its development.

In modern domestic practice, financial audit is more often seen as a very narrow concept, usually including only classical audit. financial reporting. Also close to the financial audit concept is an investment audit - an expert opinion on the targeted and most effective use of the company's investment resources.

The purpose of such an independent audit is to assess the correctness of accounting in the audited company, as well as to verify the reliability of financial statements. In addition, during the audit of the financial and economic activities of the organization, financial risks (tax, legal, administrative, economic) are identified and recommendations are issued to reduce them.

The strategic task of conducting an audit is to analyze the profitability and performance of the company in the light of its main, financial and investment activity. This task is achieved through a detailed analysis of the information that is presented in the organization's financial statements.

A general audit of the financial sphere of activity is carried out either at the initiative of the owner of the company, or for the purpose of an annual audit of the organization's reporting, the need for which is enshrined in law.

Who is this service for?

Financial audit services are primarily needed by managers of enterprises and organizations that seek to objectively evaluate the performance of their financial structures.

An audit of the financial condition will give an independent opinion on the solvency and profitability of the company, the turnover of its capital, etc. Based on the results of the audit, the manager will be able to receive a full report on all the factors of interest to him. In addition, the audit report must contain recommendations for eliminating the identified shortcomings and optimizing financial activities organizations.

According to experts, an independent financial audit is a great opportunity to take an objective look at the company's activities. The audit firm is designed to help the owner of the enterprise or other interested parties to impartially assess the overall financial performance of the business. In this case, this type of audit is the main tool and an integral element of the overall financial analysis.

In what cases will a financial audit be not only useful, but also necessary?

• Such independent reviews should be carried out periodically to superficially assess the competence and performance of in-house accountants in terms of proper bookkeeping.
• A financial audit of a company is carried out in the event of a change in the financial director, chief accountant or director of the enterprise.
• An audit of the financial condition of a company is performed to verify economic reporting before submitting it to government agencies and the statistics department.

What does a financial audit include?

• a comprehensive assessment of the financial condition of the enterprise;
• studying the efficiency of the company, as well as the financial results of its activities;
• detailed analysis of the used financial and economic strategies;
• study of stability, solvency and liquidity of the enterprise;
• assessment of the prospects for increasing business activity, as well as the effectiveness of the economic activity of the organization;
• recommendations for optimizing the financial strategy for a particular enterprise.

What should a firm that has committed itself to conducting a financial audit do?

• conduct a complete study of the structure of assets and liabilities of the audited company, income and expenses for each type and separately for each type of activity;
• consider financial ratios, the basis of valuation and the recognition of liabilities and assets,
• examine the impact of individual accounting policy factors, including imputations and estimates;
• identify and comment on the elements that underpin the company's reported business results for last years and have a significant impact on its financial results;
• explore the nature of the movement financial resources recently, as well as those factors that have a significant impact on it;
• give comments on the forecasts of the company's management regarding the prospects for the development of the commercial activities of the enterprise;
• pay special attention to the correlation of these forecasts with the current sales volume and the overall financial condition of the company.

What are the main numerical indicators that play an important role in the course of a financial audit?

• Net income and net assets
• Turnover and profitability of the company
• Accounting for expenses and income, as well as the reliability of explanations to them
• All fixed assets of the enterprise, material and commodity stocks
• Accounts receivable and financial investments enterprises
• The presence of accounts payable on loans, credits or settlements with the company's suppliers
• Unrecorded liabilities
• The correctness of the organization's balance sheet
• Transactions with related parties
• Timeliness and reliability of the inventory of assets and liabilities of the enterprise, etc.
  

Which organizations require periodic mandatory independent audits?

Subject to mandatory financial audit:

• Enterprises that are built according to the organizational and legal form of an open joint stock company
• Enterprises that conduct credit or insurance activities
• Mutual insurance companies
• Commodity or stock exchanges
• Investment state non-budgetary funds
• Funds, the source of formation of the financial base of which is voluntary contributions of legal entities and individuals
• Organizations that are unitary state or municipal enterprises whose activities are based on the right of economic management
• Enterprises in respect of which periodic mandatory financial audit and reporting to regulatory authorities are provided for by law
• Companies that issue securities
• Organizations that privatize communal or state property
  

What gives an independent audit of the company's financial activities?

Based on the results of the financial audit, the customer is provided with:

1. An auditor's report that contains officially confirmed data on the reliability of the financial or accounting statements of the audited company provided for analysis. In addition, the auditor's report should include a reliable analysis of the financial position and performance of the organization for the period under study.
2. A written report that contains complete information about all violations and shortcomings found as a result of the financial audit. All found errors and violations must be classified in full accordance with the established rules of the current legislation. In addition to the list of deficiencies found, this document should also contain recommendations on how to eliminate the financial mistakes made.
3. A separate document drawn up on the basis of the results of the financial audit should contain recommendations aimed at improving the financial condition of the enterprise, as well as at increasing the efficiency of the company's financial management system.

In the modern business world, the conclusion of an independent auditor on the reliability of accounting and financial statements is the best confirmation of the reliability and honesty of the company. In addition, an audit report will be necessary to confirm the company's image and business reputation when concluding contracts and agreements with partners or various credit institutions.

Applying for a financial audit to our company, you guarantee yourself the services of top-class specialists, a quick and professional audit, as well as the most complete and objective information in the final report.

INTRODUCTION

Auditing activity is an entrepreneurial activity of auditors for the implementation of independent non-departmental audits of financial statements, payment and settlement documentation, tax returns and other financial obligations and requirements of economic entities, as well as for the provision of other audit services.

In the context of the creation of a rule of law state and the formation of a market economy, the definition legal framework audit activity is essential. Audit provides great opportunities further development economic and legal control, the task of which is not only to protect newly emerging economic relations from unscrupulous entrepreneurship, in the prevention and fight against offenses in the economic sphere, but also in the formation of public legal awareness at a higher level.

The development of the audit was caused by the separation of interests between the administration of enterprises and investors. Therefore, the emergence of the institution of independent auditors eliminates the problem of the mismatch of interests between the compilers of information and users, leading to biased information. An audit eliminates the possibility of making economic decisions based on unreliable information, which may lead to negative economic consequences for a business entity. The activity of auditors in Russia removes the problem associated with the need for special knowledge to assess the reliability of the information received, which its users do not have.

1. BASICS OF FINANCIAL ANALYSIS

Financial analysis is used in the audit in two ways.

First, as a method of the financial mechanism of the enterprise, the processes of formation and use for its operational and investment activities. The result of the analysis is an assessment of the financial well-being of the enterprise, the state of its property, assets and liabilities of the balance sheet, the rate of turnover of all capital and its individual parts, the profitability of the funds used.

Acquaintance with the balance of the enterprise is a mandatory step in the work of the auditor, both at the stage of concluding an agreement, and during the audit itself. Financial estimates accounting reports in a compressed and concentrated form, the auditor needs them as guidelines. They serve as a hint for choosing the right solution in the process of auditing. The auditor's awareness as a result of the financial analysis carried out gives him confidence in his actions, helps to plan the audit correctly, and identify weaknesses in the accounting system.

Analytical procedures of the auditor in the course of preliminary acquaintance with the activities of the client are reduced to the following actions:

• comparison of current data with standard values;
• comparison financial ratios with non-financial indicators;
• comparison of current data with data from previous periods;
• comparison of current data with plan and forecast data;
• comparison of the current data of the enterprise with the average general economic and industry data.

The purpose of applying analytical procedures is to identify atypical situations in the activities of the enterprise and in its reporting.

Secondly, financial analysis is considered as a type of auditor's service. The administration of the enterprise, founders, owners and shareholders need complete and detailed information about the financial position of the enterprise at the end of the reporting period, income received and their use.

Audit clients are interested not only in the current financial condition of their enterprise, but also in the prospect of growth, the expected consequences of the decisions made.

The main goal of financial analysis is to obtain several key parameters that give an objective and accurate picture of the financial condition of the enterprise, its profits and losses, changes in the structure of assets and liabilities, in settlements with debtors and creditors.

At the same time, the manager may be interested in both the current financial condition of the enterprise and its immediate and long-term prospects.

The objectives of the analysis are achieved as a result of solving certain interrelated analytical tasks. The analytical task is a specification of the goals of the analysis, taking into account the organizational, technical and methodological capabilities of the analysis. The main factor in solving an analytical problem is the volume and quality of the initial information. It should be borne in mind that the periodic accounting or financial statements of an enterprise are only raw information prepared during the implementation of accounting procedures at the enterprise.

The basic principle of analytical reading of financial statements is the deductive method, i.e. from the general to the particular, which must be applied repeatedly.

In practice, the basic rules for reading financial statements have been developed: horizontal analysis, vertical analysis, trend analysis, the method of financial ratios, comparative analysis, and factor analysis.

Horizontal analysis - comparison of each reporting position with the previous period.

Vertical analysis - determination of the structure of the final financial indicators with the identification of the impact of each reporting position on the results as a whole.

Trend analysis - comparing each reporting position with a number of previous periods and determining the main trend in the dynamics of the indicator, cleared of random influences and individual features individual periods.

Analysis of relative indicators - calculation of the relationship between separate positions report or positions of different reporting forms, determination of interrelations of indicators.

Comparative analysis is both an on-farm analysis of summary reporting indicators for individual indicators of a company, subsidiaries, divisions, workshops, and an inter-farm analysis of the performance of a given company in comparison with competitors' indicators, with average industry and average general economic data.

Factor analysis - analysis of the influence of individual factors on the performance indicator using deterministic or stochastic research methods. Factor analysis can be either direct, i.e. splitting the performance indicator into its component parts, or reverse, i.e. combining individual elements into a common performance indicator.

Financial analysis is part of the overall complete analysis of economic activity, which consists of two closely related sections: financial analysis and production (management) analysis.

The separation of these types of analysis is due to the division of enterprise-wide accounting into financial accounting and management accounting that has developed in practice. This also gives rise to the division of analysis into external and intraeconomic. Such a division of analysis for the enterprise itself is somewhat arbitrary, because on-farm analysis can be considered as a continuation of external analysis, and vice versa; in the process of their production, information is exchanged.

Financial analysis, based only on financial statements, acquires the character of an external analysis, i.e. an analysis carried out outside the enterprise by interested counterparties, owners or government agencies. This analysis, based only on reporting data, which contains a very limited part of information about the activities of the enterprise, does not allow revealing all the secrets of the company.

Features of external financial analysis are:

• variety of goals and interests of the subjects of analysis;
• the plurality of subjects of analysis, users of information about the activities of the enterprise;
• availability of standard methods of analysis, accounting and reporting standards;
• orientation of the analysis only to the public, external reporting of the enterprise;
• limited analysis tasks as a consequence of the previous factor;
• maximum openness of the analysis results for users of information about the activities of the enterprise.

• analysis of absolute indicators of profit;
• analysis of relative profitability indicators;
• analysis of the financial condition, market stability, liquidity of the balance sheet, solvency of the enterprise;
• analysis of the effectiveness of the use of borrowed capital;
• economic diagnostics of the financial condition of enterprises and rating assessment of issuers.

Intra-economic financial analysis uses as a source of information, in addition to financial statements, also other system accounting data, data on the technical preparation of production, regulatory and planning information, etc.

On-farm financial analysis can be supplemented by other aspects that are important for optimizing management: analysis of the effectiveness of capital advances, analysis of the relationship between costs, turnover and profit, etc. In the system of on-farm management analysis, it is possible to deepen financial analysis by attracting management production accounting data . It is possible to conduct a comprehensive economic analysis and evaluate the effectiveness of economic activity. The issues of financial and production analysis are interrelated in the justification of business plans, in monitoring their implementation in the production management system and the sale of products, works and services oriented to the market.

Features of management analysis are:

• orientation of the results of the analysis for their management;
• use of all sources of information for analysis;
• lack of regulation of analysis from the outside;
• the complexity of the analysis, the study of all aspects of the enterprise;
• integration of accounting, analysis, planning and decision making;
• maximum confidentiality of the analysis results in order to preserve trade secrets.

We will use the following notation:

F - basic production facilities;
N - products;
L 1 - return on assets ( N/F );
A - depreciation;
M - material costs;
L 2 – material yield ( N/M );
R - production personnel;
L 3 – labor productivity ( N/R );
U – remuneration of personnel;
S - the cost of production;
To - advanced capital;
R - profit;
E - working capital;
C E – sources of formation of working capital.

Economic, production relations, which are the subject of study economic sciences are closely related to the productive forces. The content of the latter characterizes the technical conditions of production, on which labor productivity and economic indicators in general depend. That is why the basis of all economic indicators the economic activity of enterprises is the technical and organizational level of production (Block 1), i.e. the quality of the equipment used, the progressiveness of technological processes, the technical and energy armament of labor, the degree of concentration, specialization, cooperation and combination, the duration of the production cycle and the rhythm of production, the level of organization production and management.

The technical side of production is not directly the subject of economic analysis. But economic indicators are studied in close interaction with the technique and technology of production, its organization, and economic analysis in this case takes on the character of a technical and economic analysis.

The level of economic indicators is significantly influenced by natural conditions. This circumstance plays an important role in a number of sectors of the economy, especially in agriculture, in the extractive industry. Degree of use natural resources largely depends on the state of technology and the organization of production and is studied along with indicators of the technical and organizational level of production.

Economic indicators characterize not only the technical, organizational and natural conditions of production, but also social conditions life of production teams, foreign economic relations of the enterprise - the state of the markets for financing, buying and selling. The degree of use of production resources depends on all these conditions of production: means of labor (Block 2), objects of labor (Block 3) and labor itself (Block 4). The intensity of the use of production resources is manifested in such generalizing indicators as the return on assets of fixed production assets, the material intensity of production, and labor productivity.

The efficiency of the use of production resources, in turn, manifests itself in three dimensions:

1. the volume and quality of manufactured and sold products (Block 5); moreover, the higher the quality of products, the greater the volume of production, expressed in selling prices;
2. the value of consumption or cost of resources for production (Block 6), i.e. production cost;
3. the amount of resources used (Block 7), i.e., fixed and working capital advanced for economic activity.

Comparison of indicators of production volume and cost characterizes the amount of profit and profitability of products (Block 8), as well as the cost of 1 rub. products. Comparison of indicators of production volume and the value of advanced fixed and working capital characterizes the reproduction and turnover of capital (Block 9), that is, the return on assets of fixed production assets and the turnover of working capital. The obtained indicators, in turn, together determine the level of profitability of economic activity (Block 10).

From the implementation of the plan for profit and in general financial plan, on the one hand, and the turnover of working capital, on the other hand, depends on the financial condition and solvency of the enterprise (Block 11).

The generalizing indicators of each block are called synthetic. The synthetic indicator of one block, which is the output for this block of the subsystem, will play the role of an input for another block subordinate to it. Through these generalizing indicators, the connection between the individual blocks in the system of economic analysis is carried out. Each block, as a relatively separate system, is included in the system of analytical indicators that make up these generalizing indicators. For example, the volume of products sold is a synthetic indicator for Block 5, the total cost of these products is a synthetic indicator for Block 6.

2. ANALYSIS OF THE PROPERTY STATUS OF THE ENTERPRISE

The stability of the financial position of an economic entity largely depends on the appropriateness and correctness of the investment financial resources into assets.

In the process of functioning of an economic entity, its assets and their structure undergo constant changes. The most general idea of ​​the qualitative changes that have taken place in the structure of active and passive capital, as well as the dynamics of these changes, can be obtained using a vertical and horizontal analysis of reporting indicators.

Vertical analysis shows the structure of the funds of the economic entity of their sources. Vertical analysis can be subjected to either the original reporting or modified (with an enlarged or transformed nomenclature of articles) reporting. From the analytical balance sheet, you can get a number of important characteristics of the property and financial condition of the organization.

The advantage of vertical analysis lies in the fact that in the context of inflation, the relative values ​​of indicators balance sheet at the beginning and end of the year are better comparable than the absolute values ​​of these indicators.

Horizontal analysis characterizes changes in reporting indicators for the reporting period or the dynamics of their changes for a number of reporting periods.

Horizontal analysis of reporting consists in building one or more analytical tables in which absolute indicators are supplemented by relative ones - growth or decline rates.

An example of the vertical and horizontal balance of an economic entity is given in Table. one.

From the data in this table, we can conclude that there were no fundamental changes during the year. A decrease in the share of receivables and short-term loans and borrowings, as well as an increase in the share of cash and securities should be considered as a positive trend. A negative trend should be considered an increase in accounts payable of an economic entity. During the analyzed period, the value of the organization's property increased by 310 thousand rubles, including as a result of an increase in fixed assets by 14.7%, inventories and costs by 8.8%, accounts receivable by 10.6% and cash and cash by 70.4%. other assets. The share of the organization's own funds increased by 13.1%, and the share of borrowed funds - by 43% (55-12). The increase in the property of the organization by 72% (223:310x100) was ensured by the growth of sources of own funds.

Table 1
VERTICAL AND HORIZONTAL BALANCE ANALYSIS

At the same time, the share of own funds in the balance at the end of the year decreased by 2.2% and amounted to 85.4%. At the same time, both the share (2.8%) and the value (55%) of accounts payable increased.

The increase in the organization's property by 28% [(88-1) / 310x100] was covered by an increase in the organization's liabilities, i.e. accounts payable. It should be noted as a positive moment the high share (58%) in the composition of the property of immobilized assets.

An important element of the production potential of an economic entity is its material and technical base. The material and technical base of the organization is characterized by indicators:

• the share of the active part of fixed assets (machinery, equipment, vehicles);
• depreciation coefficient (the ratio of the amount of depreciation of fixed assets to their initial cost at the beginning or end of the year);
• renewal ratio (the share of newly commissioned fixed assets in their total total);
• retirement ratio (the ratio of the initial cost of fixed assets retired during the year, available at the beginning of the year);
• shelf life (ratio residual value fixed assets to their original cost).

Let's give the characteristic of fixed assets on the specified indicators.

table 2

CHARACTERISTICS OF THE MAIN MEANS OF THE ORGANIZATION

From the data in Table. 2 it follows that during the analyzed period the share of the active part of fixed assets slightly decreased - up to 48%. The cost of fixed assets as a whole increased by 24.7%, including their active part - by 22.1%. This could be considered as a positive trend in the development of the material and technical base of the economic entity. However, in the organization at the end of the year there was a decrease in the efficiency of fixed assets - up to 60.2% and an increase in their depreciation rate - up to 39.8%. The given data indicate that the increase in the value of fixed assets occurred mainly due to their revaluation, and therefore the coefficient of renewal of labor instruments is low. This is a sign that the economic entity is not allocating insufficient funds for financing capital investments and a significant renewal of its fixed assets is one of the strategic directions for the development of the material and technical base in the future.

3. ANALYSIS OF FINANCIAL RESULTS

Various aspects of the production, marketing, supply and financial activities of the enterprise receive a complete monetary value in the system of indicators of financial results.

The final financial result of the enterprise. The balance sheet profit or loss is the algebraic sum of the result (profit or loss) from the sale of marketable products, the result from other sales, income and expenses from non-sales operations.

R b = + R p + R pr + R ext

where
R b – balance sheet profit or loss;
R p - the result from the sale of marketable products;
R pr – result from other implementation;
R ext - the result of non-operating operations.

The financial results of the enterprise's activity are also characterized by indicators of proceeds from the sale of products, the amount of value added tax.

The proceeds from the sale of products indicates the completion of the production cycle of the enterprise, the return of the enterprise's funds advanced for production into cash and the beginning of a new round in the turnover of funds. After deducting from the proceeds from the sale of products, the amounts of VAT and excises, as well as production costs, receive a net result from the sale (profit or loss).

Indicators of financial results characterize the absolute efficiency of the management of the enterprise. We also calculate profitability ratios. The ratio of book profit to average cost property of the enterprise, capital, fixed and working capital gives the overall profitability. Product profitability is defined as the ratio of profit from product sales to sales revenue.

Profit is the most important indicator of the efficiency of the enterprise. Profit growth creates a financial basis for self-financing the activities of the enterprise, the implementation of expanded reproduction and the satisfaction of the social and material needs of employees and owners of the enterprise. At the expense of profit, obligations to the budget, banks and other organizations are fulfilled. Therefore, the analysis of profit should cover both the factors of its formation and the factors of distribution.

Analysis of the financial performance of the enterprise includes as mandatory elements:

• study of changes in each indicator for the analyzed period;
• study of the structure of the relevant indicators and their changes;
• study of the dynamics of changes in financial performance indicators for a number of reporting periods.

The objectives of the analysis of the financial results of the enterprise are:

• assessment of the dynamics of profit indicators;
• the validity of the actual data on education and profit distribution;
• identification and measurement of the impact of various factors on profit;
• assessment of possible reserves for further profit growth based on optimization of production volumes and costs.

In a market economy, the main goal of any entrepreneurial activity is to maximize profits. Profit growth provides the possibility of self-financing and the implementation of expanded reproduction, meeting the material and social needs of owners and labor collectives.

At the expense of profit, the organization's obligations to the budget are fulfilled, and through accumulation funds - to banks and other organizations.

Therefore, the objectives of the analysis of the financial results of the organization are:

• assessment of the dynamics of indicators of balance sheet and net profit;
• identification of the degree of influence of various factors on profit;
• evaluation of profitability indicators;
• identification of reserves for increasing profits based on the optimization of factorial signs affecting it.

When analyzing financial performance indicators and assessing their changes in a dynamic plan, an analytical table is compiled. The information basis for such an analysis is the income statement data (form No. 2).

Table 3
ANALYSIS OF THE FINANCIAL RESULTS OF THE ORGANIZATION
thousand roubles.

From the data in Table. 3 it follows that the balance and net profit of the organization for the reporting period increased (by 24.8 and 25.5%, respectively). The increase in these indicators was mainly due to the growth of proceeds from the sale of products and profit from other sales. From non-sales operations, the organization received a loss.

In the analyzed organization, the balance sheet profit of 98.7% (159/161x100) is formed at the expense of profit from product sales.

Balance sheet profit reflects the overall financial result of the financial and economic activities of the enterprise in reporting period taking into account all its aspects. Profit from the sale of products is associated with the factors of production and sales of products. The main attention in the analysis should be concentrated on the study of the causes and factors of changes in this indicator. Profit from the sale of marketable products changes under the influence of factors such as changes in:

• sales volume;
• product structures;
• selling prices for sold products;
• prices for raw materials, materials, fuel, tariffs for energy and transportation;
• the level of costs of material and labor resources.

Table 4
PROFIT ANALYSIS BY FACTORS
thousand roubles.

In table. 4 shows the data and a digital example of factor analysis of profit from product sales.

Let's determine the degree of influence on the profit of factors:

• change in selling prices for products
equal to the difference between the proceeds from the sale of marketable products at current prices and sales at reporting year in base year prices.

243.853 – 212.000= +31.853 thousand rubles

Additional profit received mainly as a result of inflation

• changes in material prices, energy and freight rates, tariff rates wages
. For this, information about the cost of production is used. In this case, prices for materials, energy and transportation tariffs were increased by RUB 10,000 thousand, wages – by RUB 9,910 thousand, which reduced profit by RUB 19,910 thousand.
• violations of economic discipline
. Established by analyzing the savings resulting from the violation of standards, specifications, non-fulfillment of the action plan for labor protection, safety, etc. this example no additional profit received due to similar reasons was revealed.
• Increase in the volume of production in the assessment at the basic full cost
. Calculate the coefficient of growth in the volume of sales of products in the assessment of the basic cost:

151,682/125,312 = 1. 210435.

Then the basic profit is adjusted by the obtained coefficient and the basic profit is subtracted from it:

32.705x1.210435 - 32.705 = +6.882 thousand rubles.

• Increasing the volume of production due to structural changes in the composition of products. The difference between the coefficient of growth in the volume of sales of products in the assessment at selling prices and the coefficient of growth in the volume of sales of products in the assessment at the basic cost is determined.

32,705(212,000/158,017 – 151,682/125,312) = 4,287.0 thousand rubles

Cost reduction by 1 rub. products. It is expressed by the difference between the basic full cost of actually sold products and the actual cost, calculated taking into account changes in prices for material and other resources and reasons related to violations of economic discipline.

151.682 - 151.524 = 158.0 thousand rubles

Changes in cost due to structural changes in the composition of products. It is calculated by comparing the basic full cost, adjusted for the growth rate of production, with the basic full cost of actually sold products.

125.312 x 1.341628 - 151.682 = + 16.444 thousand rubles.

The total deviation from profit is

72.419 - 32.705 \u003d 39.714 thousand rubles,

which corresponds to the sum of factor influences.

The results of the calculations are presented in the summary of the influence of factors on profit from product sales (thousand rubles)

Table 5
INFLUENCE OF FACTORS ON PROFIT FROM SALES OF PRODUCTS
thousand roubles.

When analyzing profit, it is important to separate the influence of external and internal factors. Generally speaking, the profit of an enterprise is the result of an increase in its profitability. Profitability is considered as the product of production productivity and the ratio of prices per unit of product and unit of resource.

Large enterprises focus on the problems of controlling changes in industrial productivity and try to reduce the role of the external factor or financial productivity. One of the conditions for the prosperity of the enterprise is the expansion of the sales market for products by reducing prices for the goods offered.

Profitability indicators are relative characteristics of the financial results and performance of the enterprise. They measure the profitability of the enterprise from various positions and are grouped according to the interests of the participants. economic process, market volume. Profitability indicators are important characteristics of the factor environment for the formation of profits and income of enterprises.

The main indicators of profitability can be combined into groups:

• calculated on the basis of profit;
• calculated on the basis of production assets;
• calculated on the basis of cash flows.

A necessary condition for making a profit is a certain degree of development of production, which ensures the excess of revenue from the sale of products over the costs of its production and marketing. The main factor chain that generates profit is represented by the scheme:

COSTS->OUTPUT->PROFIT

The components of this scheme must be under constant attention and control. This problem is solved on the basis of the organization of cost accounting according to the direct costing system. features of this system.

1. Separation of costs into fixed and variable. Variable costs are directly dependent on the volume and range of products, and with minor deviations, fluctuations in their value are synchronous with fluctuations in output. Fixed costs do not depend on changes in the volume of production, they depend on the length of the reporting period.

2. Connection of production and financial accounting. Accounting and reporting are organized in such a way that it becomes possible to regularly monitor. Basic report model for profit analysis:

• sales volume - 1,500;
• variable costs - 1,000;
• marginal income - 500;
• fixed costs - 300;
• profit ( net income) - 200.