AUDIT
Every business happens to be exposed to certain risks at different stages of development; we offer audit and assurance services designed to identify, manage and respond to all types of risk. We manage it by synthesizing many years of international and local experience.
Upon completion of an audit we provide you with a chance to get trustworthy information on the financial status and outcomes of a business and offer the best ways for eradicating shortcomings.
Audit and assurance services aim at identifying and minimizing risks through the control of financial methods, analysing the reliability of the entity’s financial statements, and identifying the accuracy of the data, allowing users of these financial statements to draw accurate findings about business results, a status of finances and property.
The service includes verifying the reliability of accounting (financial) reporting, as well as evaluating the performance of the entity and developing policies and procedures needed to continue its effective operations. Nexia TA auditors have the most updated information on the development of auditing standards, and their audit work is based on regulatory requirements in their respective jurisdictions.
Nexia TA uses the international quality control standard to perform assurance and other service transactions. At the same time, we adhere to the other ethical norms set out in the Code of Ethics for Independence and Professional Accountants.
Nexia TA professional liability is insured within GEL 10 million.
The purpose of financial statements is to present the financial condition and performance of a company. The financial statements’ audit confirms the accuracy and fairness of the results and data presented in the financial statements and thus ensures trust and transparency between the company and all stakeholders.
Financial statement audit is applied by:
- Shareholders of the company who are not directly involved in the management;
- Potential investors, who desire to assess the potential of the investment to be made.
- Banks and suppliers looking at financial potential and solvency;
- Public and employed individuals, who assess credibility and transparency of the company.
- Interested bodies (stakeholders) who assess the company’s financial integrity;
- Managing partners and owners for listing the company’s share on a stock exchange.
Our highly qualified specialists identify and assess risks of actual inaccuracies by combining international experience and knowledge of local requirements, we plan and conduct audit procedures designed to respond to these risks and collect audit evidences that is sufficient and appropriate to provide a basis for our viewpoints.
Our audit methodology is based on international auditing standards, and our audit software simplifies planning, management, and completion of audit by adhering all requirements.
Based on the audit evidences obtained, we determine whether the financial statements contain inaccuracies made intentionally or by mistake and draw up an audit report that the client will use for his/her purposes.
We apply the international standard of quality control while providing assurance and other services and adhere to all ethical standards set out in the Code of Ethics for Independence and Professional Accountants.
Review of Financial Statements and Interim Financial Information
A review service is a limited assurance engagement that we carry out in accordance with International Standards on Review Engagements (ISRE), which differs from substantiated assurances, such as a financial statement audit.
On their part, review engagements are divided into two parts:
- Financial statement review (MISS 2400) – The main purpose of a financial statement review engagement is to obtain limited assurance by the auditor as to whether the financial statement contains actual inaccuracies and presents information about financial status and results of a company in a fair manner.
- Interim financial information review by an independent auditor (MISS 2400) does not provide the ground for expressing an opinion whether the financial information is presented in a fair and equitable manner, or whether it is presented fairly in the light of all actual aspects, in accordance with the relevant grounds of financial statements.
Evidencing Investments
Evidencing investments is one of the most required and popular assurance services, adapted for the purposes of state entities as well as international and private organizations.
When evidencing investments, our goal is to obtain sufficient and appropriate evidence to ensure that the relevant investment commitments have been properly fulfilled. As a result we provide a conclusion which is reliable for targeted customers to accomplish their goals.
Other Assurance Services
Conducting assurance procedures, by agreement of the parties, includes conducting an audit by the contractor for the client in accordance with the International Standard on Assurance Engagements (ISAE) 3000, which implies expressing an opinion on the fact of execution and issuing a relevant conclusion.
When performing an assurance engagement we will obtain evidence on the basis of which we present a conclusion. The purpose of the report is to increase the level of trust of the prospective party other than the responsible party in the subject matter.
Organizations often wish to have a relevant report on engagement execution and need an assistance in preparation and submitting of financial information. In such a case we perform financial statement compilation service in accordance with International Standard on Related Services 4410.
Since the compilation engagement is not an assurance engagement, we are not required to verify the accuracy and completeness of the information provided by management for compilation purposes or to collect evidences for conveying auditor view-points or drafting the conclusion of this review concerning preparation of financial information.
Agreed-upon Procedures
In some cases, organizations need to conduct audit procedures on some component of the financial statements or on individual articles of financial data, such as, for example, revenue or total assets.
The purpose of engagement on agreed-upon procedures is conduct such audit procedures which will be agreed upon by an auditor, interested organization and any relevant third party and present a report on facts revealed.
The findings presented as a result of the agreed –upon procedures does not constitute any assurance on the facts revealed. The users of the report evaluate the procedures presented by us in the report and the facts discovered and draw their own findings from the work performed.
The findings of the agreed-upon procedures are limited to the parties with whom the procedures have been agreed, as those who are unaware of the reasons for conducting the procedures may misinterpret the outcomes.