Financial Statements Auditing
The audit of financial statements is a core activity of an accountant. This service is provided to various companies and corporations (non-profit organizations, NGOs, public benefit companies, cooperative societies, and more). Providing an opinion on these financial statements is required by law, as these entities must present audited financial statements by a certified accountant.
By law, the accountant is obligated to conduct the audit according to the auditing standards accepted in Israel. The focus is on sample-based but well-planned audits, meaning an audit that takes into account the risks and exposures to errors and/or materially misleading statements.
The purpose of the audit is to enable the accountant to issue an opinion on the financial statements. An “unqualified opinion” indicates that, in the accountant’s opinion, the financial statements fairly represent, in all material respects, the company’s financial position as of December 31 of the reporting year, its operating results, and changes in its equity, in accordance with generally accepted accounting principles in Israel.
The legal obligation to submit audited financial statements primarily arises from the presence of users of the financial statements. Banks, credit suppliers, investors, tax authorities, and others rely on the accountant’s opinion when making decisions regarding granting credit to the company, investing in its shares, or collecting taxes on its profits. In addition, shareholders directly benefit from the oversight and sample-based reviews conducted on the company’s officials and the presentation of its transactions, assets, and liabilities. This allows for a multi-year comparison and provides shareholders—who may not be involved in day-to-day management—with a vital source of information.
At our firm, Michael Weitzman & Co. – Accountants, we have a professional department primarily focused on audit work. The department is staffed by experienced accountants and specialists with academic degrees.
Our audit department places great emphasis on quality control and is structured hierarchically, with academic specialist auditors, lead audit team accountants, and a senior accountant serving as department manager. Every report undergoes a thorough audit, review, and final approval by authorized personnel before being submitted for company management approval. A significant by-product of the audit work is the audit findings report, which we consider crucial and is shared with our clients immediately after the audit is completed and the financial statements are signed. This report, which is of course confidential, details our evaluations of any deficiencies and/or areas for improvement encountered during the sample audit. It also includes recommendations for management regarding relevant accounting, economic, and tax matters.
Our audit department provides auditing services for the financial statements required for private companies, corporate groups (consolidated financial statements), NGOs, cooperative societies, and public companies. We also provide services to corporations required to submit financial statements in accordance with Israeli GAAP, the requirements of the Israel Securities Authority, and corporations that prepare their statements in accordance with international standards (IFRS).
An accountant from our firm will be happy to assist you with this service. Contact us with no obligation.
