What is an audit service?
An audit service is an important feature of the control system. An audit service is created by the behalf of the owners/management by a person or a company who has an audit license and member of the Chamber of Auditors.
It is a special and detailed control service which examines the financial and other numeral data of the company. It has to be an objective opinion of the auditor who also verifies that the examined and published data about the company is real. Of course he/she is rewarded with a reasonable fee.
Goal of an audit service
The goal of an audit service is settled by the Hungarian Audit Standards. First, the auditor has to be sure, that the financial statements does not contain any false data derived from cheating or mistakes. This converst the auditor to someone who is being able to tell if the financial statements were made in accordance with each other.
Second, the auditor has to make a reliable and appropriate statement about his/her work regarding the financial data of the company and about the communication that is described by the international standards.
Types of audit services
The audit services has different types. Some common ones are:
- Operational audits
- Financial audits
- Advisory and consulting engagements
The main goal of the operational audit is to check risks and controls of the operational units. It has to examine if the operations work effectively, efficiently and in line with the goals of the management.
The financial audit is connected to the financial statements and activities of the company. This audit has to examine the above mentioned, and give suggestions to the management.
Advisory and consulting engagements
In the advisory and consulting engagements, already working business strategies and activities can be seen, and also the ones that are only implemented. Policy, process and other advices can also be seen in this type of audit together with special areas that are asked to be examined by the management.
Qualifications of the auditor
Making an audit service is an important mental activity which requires the right values, specific knowledge and a great way of thinking. The auditor has to be competent with experience and knowledge regarding the subject. It is also necessary to be reliable, objective and trustworthy.
An appointed auditor is needed for business associations that are operating on the basis of double-entry bookkeeping. The appointment of an auditor is mandatory in accordance with the Accounting Act if both or any of the following conditions are met:
- The annual net sales exceed HUF 300 million on the average of two financial years preceding the financial year under review
- The average number exceeds 50 members of employees on the average of the two financial years preceding the financial year under review
For companies starting during the year, the revenue and the number of employees should be viewed proportionately annualized.
Audits can be managed in Hungary by people or companies that are current members of the Chamber of Auditors, having audit licenses.
Our partner holds such a license and would be available for your service. Please contact us!
FAQ for Audit Service in Hungary