Mandatory and voluntary audits
Objectives of the independent external audit:
Validation of financial statements.
Check of completeness, accuracy and precision of expenditures, incomes and financial performance results of an organization represented in financial records for reporting period.
Supervision over compliance with the laws regulating record keeping, accounting and appraisal of assets, liabilities and capital.
Identification of causes preventing from business development and preparation of recommendations on bookkeeping set up and document management.
The difference between the voluntary and mandatory audits is that the voluntary audits are performed upon an initiative of management or owners of a legal entity.
For instance, the voluntary audits may be performed in case of replacement of manager, accountant or key accounting staff; in case of significant changes in the tax laws.
In general, the voluntary audits are accompanied with a special-purpose audit engagement. This may include detailed check of accuracy of the payments to/from state treasury or focusing on a particular section of accounting statements.