Audit in accounting is an important tool for ensuring transparency and reliability of any company’s financial information. It helps not only to identify errors or discrepancies in accounting, but also to strengthen the trust of partners, clients, and tax authorities in your business.
In the context of constant changes in the tax legislation of Moldova, audit becomes especially relevant. A proper and timely audit helps to avoid fines and sanctions, minimize tax risks, and establish effective accounting practices.
On this page, we will explain in detail what an audit in accounting is, what types of audit exist, what an accountant-auditor does, and why it is important to rely on professionals for this process. We will also share how Intelcont.md helps companies in Moldova ensure financial transparency and compliance with the law.
What is the difference between accounting and auditing?
Accounting and auditing are two related but distinct processes in a company's financial management. Their main differences lie in their goals, tasks, and level of responsibility.
Accounting is the daily recording of all financial transactions of the company: purchases, sales, settlements with suppliers and customers. The accountant forms a complete picture of cash flow and monitors the fulfillment of financial obligations.
Auditing, in turn, is the verification of the accuracy and reliability of the already prepared accounting documents and reports. The auditor does not keep the records but evaluates how accurately they have been performed. At the end of the audit, a report is issued confirming or rejecting the accuracy of the financial information.
Thus, accounting is responsible for generating data, while auditing is responsible for their objective verification. Together, they help ensure financial transparency and business stability.
What types of audits exist?
Auditing in accounting can take various forms, depending on the needs of the business and legal requirements. Here are the main types of audits relevant for companies in Moldova:
- Internal audit.
Conducted by the company’s own staff or an internal auditor. The goal is to identify potential errors, improve accounting and management processes, and enhance financial efficiency.
- External audit.
Performed by independent auditors or specialized firms. This type of audit is often required to confirm the reliability of financial reporting for investors, partners, or government authorities.
- Mandatory audit.
Certain companies are legally required to undergo an audit (for example, large enterprises and public organizations). The goal is to ensure transparency of financial information and protect the interests of third parties.
- Voluntary audit.
A voluntary check initiated by the company's management. It is often used for internal review or preparation for external inspections by tax authorities.
Each type of audit has its own features and objectives, but all are aimed at building trust in the company and minimizing financial risks.
What does an accountant-auditor do?
An accountant-auditor is a professional who conducts a comprehensive review of the company's financial statements and document flow. The main task of the auditor is to ensure that all accounting records comply with legal and international standards.
During the audit process, the auditor:
- Analyzes accounting documentation, primary documents, and financial statements.
- Checks the accuracy of calculations and the completeness of accounting records.
- Evaluates how well accounting is performed and whether tax and accounting laws are being followed.
- Provides recommendations for correcting identified deficiencies and improving financial discipline.
As a result of the audit, the accountant-auditor issues an audit report — an official document that confirms or disputes the accuracy of the financial statements. This document is essential for company management, investors, and tax authorities.
Why is auditing important for business?
Auditing is not just a formal document review. It plays a key role in business growth and enhancing stability. Here are a few reasons why auditing is essential:
- Transparency and trust. Auditing confirms the accuracy of financial information, strengthening the trust of partners, clients, and investors.
- Identifying errors and deficiencies. An audit review helps identify and correct errors in accounting, minimizing the risks of fines and sanctions.
- Tax optimization. Professional auditing helps legally reduce the tax burden and cut costs.
- Improved management efficiency. Following the audit, management receives valuable recommendations to enhance financial processes and control.
Thus, auditing is not just a tool for complying with the law but also an instrument for strategic development and the financial security of your business.
Why should accountants offer auditing services?
For accounting firms and specialists, auditing is an opportunity to expand the range of services and provide clients with comprehensive business support. Here are the main advantages:
- New growth opportunities. Auditing services are in demand among companies of all sizes, especially in the context of increasing requirements for financial transparency.
- Increased client trust. Companies that offer auditing services are perceived as more reliable partners.
- Additional source of income. Auditing is not a one-time service, but a regular process that provides stable income.
- Enhanced professional expertise. Specialists engaged in auditing have a deeper understanding of financial and tax issues, which increases their value for business.
Thus, for accounting professionals, auditing becomes an important area that not only helps grow the business but also enables them to offer clients higher quality and more comprehensive services.
A Reliable Partner in Auditing and Accounting
Conducting an audit requires professionalism, experience, and a deep understanding of legislation. Intelcont.md offers comprehensive auditing and accounting support services for businesses in Moldova.
We ensure:
- Full transparency at every stage of the audit and accounting support.
- Compliance with all Moldovan legal requirements and international standards.
- An individual approach tailored to the specific needs of each client.
- Professional consultations on tax optimization and financial strategy.
Our team of experts will help you identify weaknesses in accounting, establish a transparent financial system, and prepare your company for any inspections.
Example from our practice:
Case study: One of our clients, a trading company, approached us for an audit in preparation for a scheduled tax inspection. During the audit, we identified several errors in VAT calculations and deficiencies in the documentation of primary documents. Thanks to the audit, the company was able to make timely corrections and avoid significant fines.
Conclusion: Even if you have a small company, an audit will help identify hidden risks and secure your business.
Common errors identified by audits:
- Incorrect preparation of invoices and certificates of completed work.
- Discrepancies between accounting records and actual operations.
- Errors in calculating taxes, especially for salaries and social contributions.
- Lack of or improper maintenance of HR documentation.
These errors can lead to fines and inspections by tax authorities. An audit helps to identify and correct them in advance.
Want to discuss an audit for your business?
Contact our specialists — we will find a solution that suits your needs and ensures financial stability for your company.
Conclusion
Auditing in accounting is a crucial element of financial transparency and a foundation for the successful growth of any business. It helps identify errors, strengthen trust in the company, and minimize tax and financial risks.
In this article, we have detailed what an audit is, how it differs from accounting, what types of audits exist, and why it is important for your business. We also explained how to organize this process correctly and why you should rely on professionals.
Intelcont.md is ready to be your reliable partner in auditing and accounting. We will help you prepare your company for inspections, streamline accounting processes, and ensure compliance and transparency in your financial activities.
Don’t wait – order an audit today!
