Audit of settlements with customers and customers

The activity of any enterprise involves the sale of goods or services to third parties. In fact, the sale of goods and services of the enterprise is the main source of income and, accordingly, the profit of the enterprise, therefore any mistakes in settlements with customers can be critical, since the main result of the company's activity directly depends on it - its profit. In order to avoid errors in settlements with customers, an audit of settlements with customers and customers is performed. In this article, we briefly acquaint readers with the basic principles of testing this area of the company.

Like any type of inspections of the financial condition of an enterprise, the audit of settlements with buyers and customers is governed by international audit standards. Thanks to this, a unified format for conducting checks of settlements with customers by firms around the world is achieved. In order to check the status of the company's settlements with customers, you must perform the following actions:
First of all, it is necessary to check the data on all the customers of the enterprise, to get an idea of the volume in which the goods or services are procured, how payments are made for them, whether the customers owe debts to the company or, conversely, the company to the clients. With this in mind, the following stages of verification will be carried out.

Audit of settlements with buyers and customers also concerns the verification of all settlement documents with the clients of the firm. It is necessary to establish which operations were carried out, whether goods were shipped for them, and whether money was received from customers for them. If there is a debtor's debt, it is necessary to assess its reliability or doubtfulness, and then give recommendations to the company's management on further actions with unscrupulous customers.

It is also worth noting that the correct conduct of this type of audit, like the audit of settlements with buyers and customers, can identify errors not only in the relationship of the firm with customers, but in other areas of the company. For example, sales volumes somehow correlate with production volumes. Obviously, the production volumes will also correlate with the amount of remuneration of the employees of the firm. Thus, it is not uncommon for a company to audit its settlements with staff after payment of a firm's relationship with its customers. Such cause-effect relationships are not uncommon in audit practice, since, in fact, all operations of the enterprise are integral parts of the life of its single economic organism. So, let's say, a personnel audit can be conducted after checking the calculation of tax deductions in the event that the amounts of allocations for staff do not coincide with the data of the staff schedule.

As you can see, this type of verification is extremely important for the company, as it concerns the main source of profit formation of the firm. Audit of settlements with buyers and customers ends with the issuance of a special letter of opinion, which indicates all the results that the auditors came to in the process of their audit. As you know, inspectors are obliged to be responsible for the results that were provided in the letter, and they can expect claims from the client in the event that they suffered losses as a result of an inadequate audit. We remind you that regularity, attentiveness, concentration on the object of verification and independence of the auditor from any influence are the key to a successful audit, and hence to the growth of the reputation of the auditor as a reliable partner.

We hope that with the help of this article our readers could understand such a difficult topic. We wish you successful tests and a minimum of errors!