Financial Statements Compilation, Review and Audit

General Financial Statements, as Income Statement, Balance Sheet, Cash Flow Statement, are developed to provide useful information to shareholders, creditors, government entities, customers, suppliers, partners as they capture the operating, investing, and financing activities of a company through various recorded transactions.

Because the financial statements are developed internally, there is a high risk of fraudulent behavior by the preparers of the statements. Therefore, without proper regulations and standards, internal staff can easily misrepresent their financial positioning to make the company appear more profitable than they are or opposite.

Jafar & Company offers audit and review on financial statements prepared in accordance with an IFRS, IPSAS and Azerbaijan National Accounting Standards for Commercial Organizations.

The client benefits from an effective, cost-efficient, value-added independent audit, performed promptly by experienced professionals.

Financial Statements Audit

It is a crucial service that describes an objective examination, evaluation and verification of a company’s financial records to ensure that the company represents its financial positioning fairly and accurately and in accordance with accounting standards.

Once completed, we will provide an opinion on whether the financial statements accurately reflect the financial position of the corporation.

Our FS Audit services are conducted in compliance with the requirements of International Standards on Auditing (ISA).

Financial Statements Compilation

It is the engagement service to assist the management by converting the client’s financial data into financial statements in accordance with International Financial Reporting Standards (IFRS), GAAP or National Accounting Standards.

Compilation services do not require to express a professional opinion or provide assurance regarding the information contained in the financial statement. In the end, consultants provide an Engagement letter, Financial Statements and Compilation report.

Compilations are most often used for small to medium-sized companies and are most widely accepted by regional banks.

Agreed-Upon Procedures

It is the type of audit engagement where the procedures are prepared or set out by the company for the auditor when they are to perform an audit on a specific business process or financial statement.

Agreed Upon Procedures can be regarded as a very important and fundamental step for an organization since it helps them to prepare well in advance to strictly necessary processes to facilitate a smooth audit engagement and usually practice in evaluating mergers or acquisition, internal audit and control issues, litigation preparations, bank issues on credit and loan, law compliance issues or regulatory reviews.

Additionally, this process highlights possible areas of improvement of controls that should be present within the organization, so that there is no confusion, whatsoever. Agreed-upon procedures are a recommended business practice in circumstances such as:

During the agreed-upon procedure engagement, our audit experts are supposed to discuss and decide on the procedures depending on the overall scope of the audit, and the relevant areas to be investigated.

Financial Statements Review

Financial Statements Review engagement provides a limited level of assurance that there are no material modifications that should be made to the financial statements and consist primarily of inquiry and analytical review of numbers.  A review is best summarized as what do the company does and do its numbers make sense.

Generally, the review provides less assurance than an audit and therefore is more expensive than a compilation and less expensive than an audit. Management takes responsibility for the preparation and presentation of the entity’s financial statements.

Our FS Review services are executed in accordance with the International Standard on Review Engagements (ISRE).

IFRS Implementation and Transition

If organization management has decided to implement IFRS transition – our company, with a specific and profound understanding of local and international accounting rules and standards, is the exact right place to refer.

Our team can support you on the IFRS conversion project with due diligence advice in the environment, valuations involved in business combinations and implementing the acquisition method, consultancy on structuring share option plans and payments, audit of IFRS financial statements, reconciliations between IFRS and other GAAPs (US or local GAAP), IFRS training and technical support tools, support with the preparation of IFRS accounting manuals and their implementation.