Financial Education - Audit and control of financial statements in accordance with International Standards

In accordance with yesterday's post, in the accounting world it is presumed that if an adequate quality control is not carried out in the audit applied to the financial statements according to the International Standards, the financial information of the business process would be presented lacking in veracity and celerity.

As financial decisions would not be timely or feasible according to the company's requirements. In addition to this, the administrative-accounting management of the entity would be facing an unfavorable scenario to adequately develop the accounting process.

This is due to the lack of knowledge of the real financial situation, negatively impacting the decisions to assume credit negotiations, fulfillment of salary increases according to governmental statutes, or investment possibilities, among others.

In line with the above, if this type of problem continues, the entities or companies would be developing an unreliable accounting management, since it lacks information that guarantees the measurement, valuation and control of the financial resources associated with liabilities, capital and equity, among others.

For the reasons expressed above, it is considered advisable that managers ask themselves the following questions about whether their accounting management is adequate, in order to develop an investigation that is properly oriented to achieve its main purpose, which is to sell and capitalize profits.