Consolidation of the group accounts and conduct of international audit

An important stage in conducting audit in accordance with the IAS/IFRS requirements is consolidation of the financial statements. Consolidation allows to identify the sales among the group companies and to eliminate them from the group’s overall sales – thus obtaining the first approximation of the group’s true scale of operations.

International (IAS/IFRS) audit helps achieve several business objectives:

• Firstly, the audit uncovers the internal weaknesses in the accounting policies and their application for a particular business; strengthening the financial reporting and application of a unified accounting policy could be the most tangible results of the audit.
• Secondly, the audit process facilitates the collation of the consolidated financial statements by helping to rectify the inaccuracies and omissions of the earlier consolidations.
• Thirdly, an audit will identify and remove inconsistencies contained in the financial reports. Such inconsistencies are usually a significant source of irritation to the investors who often struggle to unravel the maze of the company-specific information.

The final but perhaps the most significant outcome of the IAS/IFRS audit is manifestation of the true results of the company - hence of its value. After an international audit, the owners of the business will have a clear picture of how much the company is worth not only in the eyes of its proprietors but also in the opinion of the outside observers.