Finantsauditi

Finantsauditi is a term often encountered in Estonian business and financial contexts. It directly translates to financial audit. A financial audit is an independent examination of financial statements to determine if they are presented fairly and accurately in accordance with generally accepted accounting principles. The purpose of a financial audit is to provide assurance to stakeholders, such as investors, creditors, and regulatory bodies, that the financial information reported by a company is reliable.

In Estonia, like in many other countries, financial audits are often legally required for certain types of companies, particularly larger ones or those whose shares are publicly traded. These audits are conducted by certified auditors or audit firms who are members of professional bodies like the Estonian Chamber of Auditors. The auditor's report, which is a crucial output of the audit process, expresses an opinion on whether the financial statements present a true and fair view of the company's financial position and performance.

The audit process typically involves reviewing accounting records, testing internal controls, and performing analytical procedures. Auditors gather sufficient appropriate audit evidence to support their conclusions. A qualified audit opinion might be issued if there are material misstatements or scope limitations, while an unqualified opinion signifies that the financial statements are free from material misstatement. The findings of a financial audit can also highlight areas for improvement in a company's financial reporting and internal control systems.