Financial Statements Auditing
The audit of financial statements is a core responsibility of accountants. This service is provided to various entities (non-profits, NGOs, public benefit companies, cooperatives, etc.), as legally required. These entities must present audited financial statements.
By law, accountants are required to conduct audits in accordance with the generally accepted auditing standards in Israel. The emphasis is on well-planned, sample-based audits that consider risks and exposures to material misstatements.
The goal of the audit is to allow the accountant to issue their opinion on the financial statements. A “clean opinion” means that, in the accountant’s view, the financial statements fairly reflect the company’s financial situation as of December 31 of the reporting year, its performance, and changes in equity. This opinion is in line with generally accepted accounting principles in Israel.
The legal requirement for submitting audited statements stems primarily from the existence of users of financial statements. Banks, suppliers offering credit, investors, tax authorities, and others rely on the accountant’s opinion when making decisions regarding credit to the company, as well as for investments in company shares and tax collection on profits. This also benefits shareholders by providing oversight and sample-based checks on company executives and the presentation of transactions, assets, and liabilities, ensuring a multi-year comparison base and a vital source of information for shareholders, who are not necessarily involved in daily management.
At our firm, Michael Weizman & Co. – Advisors and Certified Public Accountants, we have a professional department primarily focused on auditing work. This department employs experienced accountants with academic degrees.
Our audit department emphasizes strict quality control, operating hierarchically with academic audit trainees, chief audit team accountants, and a senior CPA who serves as the department manager. Every report undergoes thorough auditing, proofreading, and final approval by authorized personnel before being submitted to company management. An essential by-product of the audit work is the audit findings report, which we provide to our clients immediately after the audit work is completed and the financial statements are signed. This confidential report outlines all deficiencies and areas for improvement that we encountered during the audit sample. The report also includes attention to accounting, economic, and tax-related issues relevant to the audited entity, along with various recommendations.
Our audit department handles the auditing of financial statements for private companies, group companies (consolidated reports), non-profits, cooperatives, public companies, and corporations required to submit financial statements according to Israeli GAAP and the requirements of the Israeli Securities Authority, as well as corporations presenting their reports according to international standards (IFRS).
An accountant from our firm would be happy to assist you with this service. Contact us with no obligation.
