In Peru, companies have a legal obligation to undergo an external audit under certain conditions. This measure aims to guarantee transparency and the correct administration of companies’ financial resources, providing shareholders, investors and tax authorities with a clear and accurate view of the organisation’s economic situation.
What is an external audit?
An external audit is an independent and objective examination of a company’s financial statements, carried out by an authorized auditing firm. The purpose of this audit is to guarantee that the financial reports presented by the company reliably reflect its economic situation, following generally accepted accounting principles (GAAP) and local regulations. In addition to their control value, external audits offer a detailed analysis of the company’s management, detecting possible areas for improvement or financial risks.
Who is obliged to carry out an external audit in Peru?
Companies listed on the Lima Stock Exchange must also undergo external audits on a regular basis.
There are various types of audit that can be carried out in a company, depending on the need and the focus of the examination:
- Financial Audit: This type of audit focuses on the review of the company’s financial statements, with the aim of verifying that they are presented in accordance with established accounting principles and that there are no irregularities that could compromise the integrity of the financial information.
- Internal audit services: Unlike external audits, these are carried out internally, generally by the company’s own staff. The objective is to evaluate the effectiveness of internal controls, risk management and operational procedures.
Benefits of external audits for companies
External audits not only comply with legal obligations, but also offer various benefits for the company. Among the most important are:
- Detection of fraud or irregularities: Audits are a key tool for detecting possible fraud or malpractice within the organisation, helping to prevent significant financial damage.
- Compliance with tax regulations: External audits ensure that the company complies with all current tax and accounting laws, avoiding legal problems or sanctions from the tax authorities.
Tax advice and external audit in Lima
Having accounting and tax advice in Peru is essential for companies that want to comply with current legislation and optimise their resources. Comprehensive tax advice in Lima can guide companies through the external audit process, ensuring that all tax and accounting aspects are in order.
By choosing the best tax consultancy in Lima, companies receive the support of professionals with experience in Peruvian tax legislation and best auditing practices. This is crucial for companies seeking not only to comply with regulations, but also to optimize their tax burden and improve their financial efficiency.
The price of an external audit can vary depending on several factors, such as the size of the company, the complexity of its operations and the scope of the audit required. However, the cost of the audit is a necessary investment to avoid long-term fiscal or financial problems, and the benefits far outweigh the initial expense.
Why is external auditing important for business management?
An external audit not only helps to comply with legal obligations, but also improves business management. Companies that undergo external audits have a competitive advantage by presenting a clear and accurate picture of their financial status. In addition, external audits make it possible to identify areas for improvement in resource management, which contributes to a more efficient use of resources.
Audits are also essential for companies seeking to attract investors or access financing. External audit reports provide a guarantee of transparency and reliability that potential investors value when making investment decisions
Conclusion
External financial auditing is a legal obligation for many Peruvian companies, but beyond being a requirement, it is a fundamental tool for transparency, efficiency and business growth. If your company needs an external audit, make sure you have the best professionals in accounting and tax advice Peru to comply with current regulations and maximize the benefits of this process.
If you would like more information about our external audit services, accounting audit services, or any questions related to accounting and business advice in Peru, please do not hesitate to contact us by email at contacto@vag-global.com or call us on +511 436 4612. We are here to help you comply with your legal obligations and improve your financial management.