Fjármálaúttekt

Fjármálaúttekt translates to financial audit in English. It is a systematic examination of the financial records and statements of an organization. The primary purpose of a fjármálaúttekt is to provide an independent opinion on whether the financial statements are presented fairly, in all material respects, in accordance with a specified financial reporting framework. This framework is often the International Financial Reporting Standards (IFRS) or local generally accepted accounting principles (GAAP).

The process involves various stages, including planning, risk assessment, testing of controls, substantive testing of account balances and transactions, and finally, the formation of an audit opinion. Auditors gather evidence through inquiry, observation, inspection, and recalculation. They also confirm balances with external parties. The goal is to identify any material misstatements, whether due to error or fraud.

A fjármálaúttekt is typically conducted by external auditors who are independent of the organization. This independence is crucial for the credibility of the audit opinion. Internal audits, while also examining financial matters, are performed by employees of the organization and often focus on operational efficiency and compliance with internal policies. The findings of a fjármálaúttekt are usually presented in an audit report, which is a key document for stakeholders such as investors, creditors, and regulatory bodies. It enhances transparency and accountability within the organization.