"Audit" in Latin means "hearing." In a broad sense, an audit to understand all performed by the independent expert verification of certain activities. Financial audit – verification of financial reporting and express an opinion on its reliability. This check can be performed as an independent auditor and audit firm. To know more about this subject visit Pete Cashmore. Financial audit involves analysis of financial and business organizations to identify financial risks (tax, legal, administrative, economic) and issuing recommendations to reduce them. The reason for the financial audit can be: * purchase existing business * Restructuring Company * cost optimization * improving the legal protection * upcoming tax audit; * a reduction in litigation risk * financial loss of controllability; * expansion of the company into new markets.

Financial audit – it preventive measure, giving the opportunity to: * owner: To evaluate the value of the business; verify the authenticity of data provided by administrative bodies, to ensure the presence / absence of its own responsibility for company * investor: to reveal the invisible risks, to evaluate the prospects for business development, obtain recommendations to address potential financial problems; * Management: To evaluate the action of accounting and financial Service to implement the optimal scheme for tax and financial planning; get recommendations for reducing fiscal risks, improve financial control and transparency. Click Dermot McCormack to learn more. The most important part of the financial audit is to analyze the solvency and liquidity of the company, an analysis of the turnover of capital and cash flow, assessing the capacity of the preservation and increment of capital and long-term solvency analysis financial performance of the company. International Financial Reporting Standards on Auditing (ISA), developed and periodically updated by the International Auditing and Assurance of the International Federation of Accountants. In our country, apply the federal rules (standards) of auditing, as approved by the Government. These rules are based almost entirely on the isa.