Accounting audit

Accounting audit is much more than just a simple verification of figures. It is a thorough assessment of a company's or organization's financial accounts, conducted by a qualified auditor. The main objective? To ensure that the financial statements, such as the balance sheet and income statement, accurately reflect the financial reality of the entity in compliance with current accounting standards.

The different types of audit

Legal audit

A legal audit is a mission carried out by a statutory auditor (CAC) and is mandatory for certain companies exceeding specific size or revenue thresholds, particularly in public limited companies (SA), partnerships limited by shares (SCA), and some limited liability companies (SARL) or simplified joint-stock companies (SAS). The statutory auditor is an independent figure who takes responsibility by certifying the accounts. They must report any anomalies or significant risks that could affect stakeholders (shareholders, creditors, etc.).

The legal thresholds for appointing a statutory auditor vary by country but generally include criteria such as:

  • A high revenue
  • A significant total balance sheet
  • A considerable number of employees

Objective: To certify that the annual accounts (balance sheet, income statement, notes) accurately reflect the company's financial reality and comply with current accounting standards.

Contractual audit

Non-mandatory audits, or contractual audits, are not required by law, but are often conducted at strategic moments for the company. They are commissioned by management or shareholders for various reasons.

  • Business sale: When a company is about to be sold, an accounting audit is often conducted to provide a clear and objective picture of the company’s financial health to potential buyers. This helps avoid disputes and establishes a transparent selling price.
  • Acquisition or merger: Before an acquisition or merger, the buyer may request an audit to verify the financial situation and ensure that there are no hidden risks (debts, disputes, etc.). This is often referred to as financial due diligence.
  • Internal audit: A company may decide to conduct an internal audit to identify anomalies, evaluate financial performance, or improve internal processes, without being subject to legal obligations.
  • Fundraising: Non-mandatory audits can also be carried out to reassure investors prior to a fundraising effort, ensuring the robustness of the accounts.

Objective: To ensure the reliability and transparency of financial information, as well as to meet legal or contractual obligations.

Audit of accounts by We Doo Accounting

As part of our activities, it is important to clarify that we do not offer contractual or statutory audits. Our approach focuses on account auditing, a process aimed at validating the proper management of a company's accounts without being bound by legal requirements.

Why do an accounting audit ? Is it mandatory ?

An accounting audit is an essential tool for trust and control for companies, shareholders, and other stakeholders. It ensures sound financial management, mitigates risks, and complies with legal and tax requirements.

Conducting an accounting audit allows you to:

  • Ensure that the company’s accounts are accurate and faithfully reflect its true financial situation, which is crucial for enabling stakeholders (investors, shareholders, banks, etc.) to make informed decisions.
  • Confirm that the financial statements are prepared in accordance with current accounting standards (such as IFRS or local standards), a particularly important aspect for publicly traded companies or those operating internationally.
  • Detect anomalies, errors, or fraud in account management, thereby serving as a safeguard against internal or external misconduct and strengthening internal controls.
  • Evaluate the effectiveness of the internal controls and financial management systems in place, helping to identify weaknesses and propose improvements for better risk management.
  • Provide assurance regarding the quality and transparency of the financial statements. The audit enhances the confidence of shareholders, investors, creditors, and business partners. A company with regularly audited accounts is perceived as more reliable.
  • Reassure potential investors about the financial health of the company before fundraising, an initial public offering (IPO), or a business sale.
  • Verify that the company complies with its tax obligations and avoid any risk of tax reassessment.

What are the key elements of an accounting audit? What documents come out of it?

The key elements of an accounting audit

The key elements of an accounting audit are the essential points that define the steps and content of the audit assignment. These elements enable the auditor to assess the quality of the financial statements and the management of the company.

  • Audit planning

Before starting the audit, the auditor develops a strategy based on potential risks and the specificities of the company. This includes:

​- Understanding the company's activities (industry, size, structure)​
- Identifying specific risks (fraud, mismanagement, accounting errors)
​- Defining working methods (sampling reviews, specific analyses, etc.)

  • Evaluation of internal controls

The auditor evaluates the internal control system implemented by the company to ensure that the accounting and financial processes are reliable. This helps estimate the level of confidence to place in the data produced by these systems.

  • Verification of accounting documents

The auditor then proceeds to verify accounting documents and transactions, ensuring that the recorded operations are correct and compliant with accounting standards. They examine, for example:

​- Invoices (incoming and outgoing)

​- Bank statements

​- Payroll records

​- Contracts with third parties

​- Fixed assets

  • Analysis of financial statements

The auditor ensures that the key financial statements, such as the balance sheet, income statement, and notes, accurately reflect the company's financial position. They compare the results with previous periods and assess the consistency of the figures.

  • Compliance testing

Tests are performed to verify that the company correctly applies accounting standards and financial management principles, particularly regarding provisions, depreciation, and liabilities.

  • Risk assessment

The auditor identifies potential risks for the company (e.g., fraud risks, debt-related risks, or tax risks) and assesses their impact on the financial situation.

  • Communication with management

The auditor engages with the company's management to discuss their observations, ask questions about certain practices, or request justifications. This helps clarify complex or ambiguous points.

Key documents produced during an accounting audit

  • 1. Engagement letter

Before starting the audit, an engagement letter is signed between the auditor and the company. This letter defines the objectives of the audit, the respective responsibilities, and the terms of the intervention (schedule, scope, etc.).

  • 2. Working papers

These are the internal documents of the auditor, which include their observations, analyses, and tests performed. They form the basis of their conclusions and justify the opinions expressed in the final report. These documents are generally not public, but they help track the details of the work completed.

  • 3. Audit report

The audit report is the main document delivered by the auditor at the end of their assignment. This report contains:

    • The auditor's opinion on the reliability of the financial statements.
    • A mention of any reservations or issues detected.
    • Recommendations for improving management or accounting processes (if applicable).

This can be a certification of the accounts (unqualified opinion) or a report with reservations, or even a refusal to certify if the anomalies are significant.

In addition to the audit report, the auditor may provide a letter of recommendations. This document, often addressed to the company's management, contains suggestions for improvement regarding internal controls, financial management, or compliance with standards.

  • 4. Report to stakeholders

In some cases, the auditor may also provide a report or oral presentation to stakeholders (shareholders, board of directors, etc.) to explain their findings and answer questions.

The advantages of accounting audit with We Doo Accounting

Sector expertise and mastery of information systems

We Doo Accounting has deep expertise across various sectors, including industry, services, finance, and trade, allowing for tailored audits. Additionally, proficiency in information systems, particularly Odoo, facilitates quick access to critical data and ensures reliable extractions for accurate analyses.

Precision and compliance

We ensure that all elements of your accounting integrated into Odoo are evaluated and optimized according to current accounting and tax standards. This includes a detailed review of asset capitalization, tax management, and compliance with advance tax payment obligations.

Conducting relevant analyses and efficiency

Our expertise enables us to quickly process large volumes of information and efficiently produce financial reports and sector analyses. We also utilize Odoo’s automation capabilities to streamline the auditing process, including the automation of monthly closures, which reduces human errors and enhances overall efficiency.

Multidisciplinary approach and integrated services

Our firm has specialists in various fields, such as organization, taxation, management control, and business law. This diversity of expertise allows us to provide integrated services that address a wide range of issues while ensuring the consistency of our recommendations.

Transparency, reliability, and performance

We ensure complete transparency of financial data, which enhances the trust of stakeholders, such as investors and financial partners. Our detailed reports offer a clear view of your company’s financial health. By identifying irregularities and streamlining accounting processes, we help reduce management costs and improve financial performance.

Your guarantees with We Doo Accounting

Proximity collaboration

We establish a close relationship with our clients to better understand their auditing needs. Our team is here to listen and provide tailored advice for your business and the challenges you face.

Responsiveness to various requirements

In the field of auditing, responsiveness is crucial. We are ready to act quickly to address your questions and implement solutions when anomalies are detected.

Rigorous processes

We ensure rigor in all our auditing assignments. Every document and financial statement is meticulously checked, guaranteeing a comprehensive analysis of your company’s financial health.

Trusting relationship

Our reputation is built on the reliability of our audits. You can count on us to provide clear and objective reports, helping you manage your finances better and meet your legal obligations.

Agility and flexibility

We are agile and adapt our approach based on the evolution of your business and regulations. Our team is prepared to adjust its auditing methods to meet your specific needs and market changes.

FAQ : We Doo Accounting Accounting Audit

The auditor is responsible for verifying a company’s financial statements to ensure their compliance with accounting standards. They analyze transactions, financial documents, and internal control systems, and issue a report indicating whether the accounts are accurate and reliable.

It is essential to review relevant documents, compare historical information, and perform rigorous checks.

A thorough analysis of transactions and comparisons with previous periods can help uncover inconsistencies.

Open dialogue allows for clarification of raised issues and ensures that all concerns are addressed effectively.

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Ensure the accuracy and compliance of your accounting with our expertise in auditing accounts on Odoo! Want to learn more about our auditing services or get a personalized consultation? Contact us now to find out how we can help you ensure the security of your financial operations.

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