Considered as a true business ethic, the application of transparency is indispensable. For a company, but above all, in the context of accounts. If it is characterised by a commandment for a company and its application is real. This is done by putting in place the elements of control of the accounts, for the financial health of the company. Nevertheless, to grasp this control, it is not enough to restrict oneself to the knowledge of the various business accounts. It is also, and above all, necessary to be aware of the fundamental players in the inspection of financial statements.
Concept of a business account
A legal entity, in this case a company, is intended to make productive efforts to benefit from the economy resulting from profits. The accounts thus evoke the evolving situation of a company, according to the fiscal year that it accomplishes. For information purposes, they are characterised by their annuality. A complete cycle of a company’s activity is limited to one year. The determination of the results, which are the accounts, is of paramount importance and is carried out by an accounting and financial auditor. The latter must therefore apply the principle of annuality.
The account is a document that includes the overall balance sheet, the profit and loss account and the accounting annex. Finally, the closing of each financial year is the ideal time to draw up the annual account. Likewise, to ensure that accounting records and inventories are kept.
Exceptions to the rule of auditing accounts
On the other hand, exceptions are always supported by the legislation in force, for subjects concerned by the annuality of accounts, namely micro-companies and natural persons carrying out their entrepreneurial activities under a simplified tax regime.
Consequently, these accounts must be characterised by the sincerity of the accounts. They claim the moderating image of a company. In this respect, the procedures require the intervention of an accounting and financial auditor.
Actors in the auditing of accounts in a company
The security and control of a company’s activities must depend, to a large extent, on the establishment of monitoring procedures. This will ensure the safeguarding of its assets, compliance with laws and regulations, and the optimisation of performance. Indeed, two types of control exist: internal and external control.
The internal control is ensured by an accounting and financial auditor, who will guarantee the absolute recording of accounts and the conformity of the accounting, always, with the rules and principles relating to it. Eventually, there is the need for the intervention of an internal auditor. This expert will assess the functioning of the control measures and ensure that management is aware of possible improvements.
For information purposes, two personalities are involved in carrying out the external audit of the company’s assets: on the one hand, the auditor (CAC), who will check the accounting and certification of the financial statements. On the other hand, the public financial authority, which ensures the protection of savers, and the financial market.