Account auditing is the activity which consists of reviewing and verifying annual accounts, as well as other financial statements or accounting documents, prepared in accordance with the applicable regulatory framework of financial information, provided that the purpose of such activity is the issuance of a report on the reliability of said documents that carries weight with third parties.
The activity of account auditing is characterised by the public relevance that it fulfils in rendering a service to the entity reviewed, affecting and of interest not only to that entity, but also to third parties that maintain or can maintain relations with it, given that all of them – audited entity and third parties – can know the quality of the audited financial economic information on which the audit opinion issued is based.
Among many others, the advantages of submitting an entity’s accounts to audit are:
First, to comply with current legislation.
Second, to obtain and transmit greater transparency in dealing with third parties (suppliers, financial institutions, customers, others); undoubtedly, in the highly competitive and endlessly changing environment of financial regulation, the audit of accounts is a fundamental process in the gaining of credibility, in facilitating the external relations of the company and in ensuring strategic and operational decision-making based on truthful financial information.
Third and last, to obtain an opinion from an independent expert in legal regulations, accounting principles, valuation criteria, etc., with maximum independence from the audited entity. In fact, external audit services can only be provided by a qualified professional who is entitled to do so by the Official Register of Account Auditors (ROAC) of the Institute of Accounting and Audit of Accounts (ICAC), which is an autonomous body attached to the Ministry of Economy and Finance.