As the financial steward of an enterprise, internal audit is an important means to ensure the financial health of the enterprise, identify problems and improve management. In many audit projects, the main business and accounts receivable have become the focus of the audit because they are closely related to the cash flow and profitability of the enterprise. Today, let's talk about how to "audit without leakage" of the main business and accounts receivable in the internal audit.
First and foremost, auditors need to understand the company's industry background, business processes, and accounting policies, which are the basis for conducting an effective audit. Understanding the characteristics of the main business can help us grasp the key points and difficulties of the audit and accurately locate them.
Main business audit skills
Process Audit:At every step of the way, from order receipt to product delivery, make sure there are clear processes and who are responsible. For the audit of the process, the focus is on matching, reconciling the documents of each link in the sales process, such as orders, invoices, sales contracts, invoices, etc., to ensure that the information is consistent and correct.
Contract spot checks:The contract is the legal basis for the operation of the main business, so it is very important to check the authenticity and completeness of the contract. A certain percentage of contracts can be randomly checked to check whether the signing, performance and preservation of relevant documents are standardized.
Revenue Recognition:Does revenue recognition comply with the Accounting Standards for Business Enterprises and relevant tax laws?Is there an inflated revenue or a delay in recognizing revenue?These are all issues that must be focused on in an audit.
Accounts receivable audit skills
Aging Analysis:Perform an aging analysis of accounts receivable, focusing on those that have been outstanding for a long time. Through aging analysis, it is not only possible to understand the collection of payments, but also to identify potential bad debt risks.
Customer Credit Assessment:Regular credit assessment of customers can not only optimize the structure of accounts receivable, but also prevent credit risk. Especially for large accounts receivable, it is necessary to ensure that the customer's credit status meets the requirements of the enterprise.
Redemption tracking:There should be a special person responsible for the tracking and collection of the payment. Track the collection status of accounts receivable through the system, find problems in time and take corresponding measures.
Construction of internal control system:Formulate and improve the internal control system of accounts receivable management to reduce audit risks from the source. For example, conflicts of interest can be prevented by stipulating that the salesperson is only responsible for sales and that the finance department is responsible for collecting payments.
Field confirmation:For key or large amounts of accounts receivable, the authenticity and accuracy of the accounts can be directly confirmed to the customer through **, letter or on-site visit.
As a financial and tax expert and a veteran of the audit field for many years, I am well aware of the complexity and meticulousness of audit work. In financial internal audit, every detail may hide risk points, and our goal is to discover these hidden dangers and make reasonable suggestions in a timely manner to help enterprises grow better.
Through the above-mentioned audit skills, it is believed that the internal auditors of the enterprise can carry out their work in a more targeted manner and improve the efficiency and effectiveness of the audit. If you are interested in financial internal audit, or have more financial and tax issues to consult, welcome to follow me, let us communicate and make progress together. Remember, a good internal audit can not only enhance the financial transparency of a company, but also be the patron saint of sustainable development.