Property and inventory audit
Why Crowe Audex?
- More than 26 years' experience in audit and consulting market.
- The largest audit and consulting company in the Volga Federal District: more than 500 companies annually choose us to conduct their audit.
- We have more than 90 members in our staff, most of them are qualified auditors, consultants and lawyers, have science degrees and rewards.
- We have favourable opinions about the results of external control of the Federal Service for Fiscal and Budgetary Supervision.
- We guarantee confidentiality of your data.
- We provide maintenance during all the agreement period.
Why do you need inventory audit of your property and liabilities?
In compliance with the Accounting Policy Regulations in the Russian Federation, established by the Order of the Ministry of Finance of the Russian Federation dated July 29, 1998 No 34н, inventory is compulsory in the following cases:
- transfer of property that belongs to organization in leasing, buy-out, sale and in cases provided by the legislation in case of transformation of state or city unitary enterprise;
- before annual accounting reports, except for the property that was under inventory not earlier than October 1 of the accounting year. Inventory of fixed assets is to be conducted once in 3 years and once in 5 years for library stocks. In the districts situated in the Far North and equated localities, inventory of goods and crude materials shall be conducted during the period of the least remaining;
- change of inventory custodians (in force for the date of transfer and acceptance of the responsibilities);
- finding of fraud, abusive acts and damage of material values;
- in case of acts of elements, fire accidents and other accidents and emergency situations caused by extreme conditions;
- in the course of liquidation (reorganization) before preparing liquidation (separation) balance sheet;
- in other cases provided by the legislation of the Russian Federation and statutory acts of the Ministry of Finance of the Russian Federation or in cases provided by the local documents of business entities.
The purpose of inventory
The main purposes of inventory are:
- detection of actual property;
- juxtaposition of the actual property with the accounting data;
- review of completeness of accounting recognition of liabilities.
What is the role of auditor in the inventory procedure?
Auditor HEPLS YOU TO:
- inspect inventory stocks
- observe the established procedures for inventory stocks safety control and recognition of inventory results in accounts
- take proof of reliability of procedures provided by the management of the audited entity
- minimizes risks of merely observing formalities during the inventories.
Statutory regulation of auditor’s involvement in the process of inventory of material stocks.
During the audit an auditor can offer his participation in property inventory.
The regulation (standard) No 17 On receiving audit evidences in particular cases, approved by the Resolution of the Government of the Russian Federation No 696 dated September 23, 2002 establishes that if the amount of inventories is considered meaningful for financial (accounting) reports, auditor should receive sufficient audit evidence of quantity and condition of the inventories.
At the same time, any organization can involve an auditor for inventory or conducting the inventory by the specialists of an audit company in order to receive a qualified independent opinion about the actual stock of inventories.