An audit of consolidated (combined) statements is one of the most voluminous, technologically and methodologically complex types of audit.
Our practice shows that in order to express an opinion on the reliability of statements, it is necessary to audit organizations whose statements are included in the consolidated (combined) statements. But first, let’s try to figure out which statements are consolidated and which are combined.
Consolidated financial statements should be provided by a Group of companies, including the parent, organizations under its control and organizations, which the Group has a significant impact on.
General requirements for the preparation, presentation and disclosure of consolidated (consolidated) financial statements are regulated by law from April 29, 2002 No. 76 “On Accounting”.
Consolidated financial statements are understood as systematic information reflecting the financial position of an organization, its change and financial performance.
Combined reporting is commonly understood as the single reporting of a Group of organizations, where one of the organizations of this Group has control over other organizations is not necessary. Inclusion in the group in this case is determined by the wishes of the customer and serves his specific goals.
Today, business in all areas of the national economy is developing rapidly, so it requires new forms of reporting. For example: before a capital transaction involving the merger of several companies, you need to see in advance what the consolidated financial statements of the Group will be after its formation, for this you will need an audit of the statements of each of the merging companies and an audit of the combined statements generated before the merger.
Entrusting us an audit of consolidated (combined) statements, you get:
- a real picture of the financial and economic activities of significant organizations of the Group;
- assessment of the financial and economic activities of the Group;
- information on the unity of accounting policies used in the preparation of consolidated (combined) statements;
- confirmation of the correctness of the preparation of consolidated (combined) statements;
- confirmation of the correctness of the valuation of assets, liabilities and equity of the Group’s statements;
- assessment of financial risks;
- prevention of errors and the ability to correct already committed violations;
- assessment of probable risks and recommendations for their minimization;
- identification and assessment of tax consequences (in cases of increasing the scope of your organization, the acquisition of individual legal entities, groups of companies, investment, etc.).
If you have a need and an obligation to form consolidated (combined) statements, then our specialists will help you develop a methodology for preparing such statements and, if necessary, formulate it.