What is Financial Report Auditing
Financial report auditing is similar to tax compliance audit, but unlike that was based on the compliance with tax regulations to complete. Take small and medium enterprises as an example, according to the current regulations, the company have the following situations should conduct the financial report auditing:
- The company with actual capital more than TWD 30 million or reaching a certain scale;
(“to a certain scale” means that the amount of capital does not reach TWD30 million but the net revenue is TWD 100 million; or the number of employees participating in labor insurance is 100 people.)
- Or the company that borrows more than TWD 30 million from financial institutions.
Who needs Financial Report Auditing
Those who meet the following conditions must apply for the financial report auditing:
- Capital Amount more than TWD 30 million (inclusive);
- Handle promissory note guarantee or borrowing more than TWD 30 million (inclusive);
- Multi-level marketing company: Turnover more than 100 million;
- Public company;
- Educational corporation and private school;
- Medical corporation.
Advantages of Financial Report Auditing
- Accounts transparency, avoid man-made accounting errors, fraud and legal issues cannot be followed.
- Through the financial audit process, at the same time review the company’s internal control and accounting system and give suggestions for improvement.
- Accountant conducts the financial analysis during auditing, giving the company’s operational management strategy and giving the recommendation for the business improvement.