Sign up with your email address to be the first to know about new products, VIP offers, blog features & more.

The importance of a good financial audit

The accounting is an important part of running a business. When your financial plan isn’t right, it’s hard for you to survive in the market. For companies it’s important to know if their financial statements are good enough. A financial audit is conducted to provide an opinion on this, with specified criteria.

What’s a financial audit?

A financial audit is a kind of examination of a company’s financial situation and reporting activities. The examination is done by another party. This examiner checks the whole representation of financial activities and claims for the company.

In the Netherlands is mandatory to have a financial audit each year if at least 2 of the 3 of the following criteria are met with the company:

  • Valle of assets exceeds 6 million euros
  • Net turnover is in excess of 12 million euros
  • 50 or more employees

Who are the examiners?

A financial audit can be made by an audit firm. There are a lot of audit firms in each country. In the Netherlands there are audit firms which are AFM-licenced. The AFM is the Dutch Financial Market Authority. When audit firms have the licence, they are allowed to perform all kinds of financial audits, regardless of the industry. The audit firm can do all the audit services in consultation with the company.

As I said, there are a lot of audit firms in all countries. If you look for an audit firm in Holland, Reanda is a good option for you. Reanda is specialized in helping companies that have most of their operations abroad.

Share this article