Israeli law usually requires every organization, whether a business or a nonprofit organization, to submit annual financial statements that have been audited by a certified public accountant. In fact, this is the accountant’s main job with the various organizations. During the audit, the auditor will examine various reports related to the organization’s financial conduct from various aspects in order to express his or her professional opinion if the financial statements present fairly, in all material aspects, the financial position of the organization as at the audited periods and the results of its operations and its cash flows for the periods then ended in conformity with accounting principles generally accepted in Israel and applicable regulations.
What do organizations need for audited financial statements?
The reports are used by the various organizations to meet their needs against various factors essential to the company’s proper conduct.
- Banks and other financing companies – In order to receive various loans, financing and investment proposals, these entities will ask to see audited financial statements.
- Tax Authorities – Require audited reports to determine the annual tax liability.
- Public organizations that receive budgeting from government offices will submit to the relevant offices financial statements audited by an accountant.
- Company shareholders will want to closely monitor the company’s financial performance to see how their investment is doing.
What financial statements are audited by an accountant?
There are several main reports that will be required by various factors after an accountant’s review, audit and opinion.
- Income statement – A report describing the financial movements as a result of the organization’s ongoing operations last year as of December 31.
- Balance Sheet – A report reflecting the state of the organization’s assets against its liabilities and equity as of December 31.
- Cash Flow Statement – Details of the organization’s cash flow as a result of its regular operations, various loans and investments as of December 31.
- Statement of Changes in Equity – Specifies changes that occurred in the organization’s equity as of December 31.
What do auditor audit services include?
After contacting the accounting firm and the relevant organization, the parties will coordinate the needs and expectations from the audit of the reports and to whom they are referred. After the audit planning has been completed, the auditor will review all the various reports and experience his opinion as to whether they comply with Israeli accounting rules and whether the reports do reflect the company’s financial conduct in a transparent manner. In the event of various irregularities in the reports or such and other deficiencies, they will be presented to management and the auditor will assist in correcting them. After the approval of the company’s management of its financial statements, the auditor’s signed opinion will be attached to the financial statements.
CPA Guy Dovrat audits financial statements for all types of organizations
In his office located in Yehud, CPA Guy manages audits of financial statements of all kinds and organizations of all sectors. His extensive experience and many years with the various tax authorities and his in-depth understanding of the proper management of financial statements enable him to provide professional and valuable opinions to any organization and assist in the preparation of annual financial statements. In order to enjoy a unique service at its professional level and in close and humane discourse, we invite you to contact us and hand over the accounting conduct of your business to loyal hands.
