Risks always lurk everywhere in the business environment. There are many different types of risk, financial risk which can be considered as “tycoon” of all risks, because after all, every risk also results in financial losses (immediate or long term) for business.
The financial risks may vary, but the level of harm, frequency of occurrence varies greatly depending on the business sector and business management characteristics of each business. There is no common formula for risk analysis for every business, but there are general principles that every business should pay attention to. The most important is still the deep understanding of the board of directors about the hazardous nature of the happened or potential risks and importance of risk management.
This service applies to enterprises not using the tax accounting package provided by MTP Consulting Co.,Ltd, but in need to clean up, revise the accounting book system and financial statements in one or more financial years.
When should the Company review the financial statements?
Detect and advise on financial risk control of enterprises
- Serve before inspection and examination of tax finalization
- Transfer the works between old and new accounting
- Complete the system of books, vouchers, financial statements, improve competitiveness
- Transparency of data among investors.
- Serving the purchase and sales of business (M & A)
- Prevent errors and frauds in financial operations and administration of enterprises
The process of reviewing financial statements focuses mainly on areas where there is a risk of material misstatement:
- Perform comparative analysis of the previous period, the forecast period as well as whole-sector results
- Consider consistency
- Procedures for recording accounting transactions
- Consider unusual or complex cases that may affect the results of the report
- Review material events occurring after the date of financial statement
- Review important entries
- Review comments from management agencies
- Check financial statements for conformance with financial reporting framework
- Review management reports reviewed or audited by the accountant from the previous period
- Receive and check the original documents arising in the course of operation of the enterprise
- Check and inspect value-added tax (VAT), corporate income tax (CIT)
- Check accounting vouchers for adjustment
- Check all accounting books, tax reports, financial statements of enterprises
- Appraise and adjust the tax reports and financial statements in accordance with the tax law
- The accounting records will be finalized in accordance with regulations
- Advising and proposing solutions to problems and errors that the accounting system of enterprises are suffering.
- Adjust and complete all accounting books
- Prepare financial statements according to regulations
- Work with the accounting and tax authorities on behalf of the business
