Quarterly Finance Audit Report
Audit Period: October 1, 2083 - December 31, 2083
Prepared by: Internal Audit Department
This report presents the findings of the quarterly financial audit conducted for the period ending December 31, 2083. The audit aimed to evaluate the accuracy of financial records, the effectiveness of internal controls, and compliance with regulatory standards.
Scope of Audit
Examination of financial statements.
Assessment of internal control systems.
Verification of compliance with applicable laws and regulations.
Audit Findings
Financial Statement Analysis
Financial Aspect | Q3 2023 ($) | Q4 2023 ($) | Variance (%) |
Total Revenue | 5,000,000 | 5,500,000 | +10% |
Operating Expenses | 3,000,000 | 3,200,000 | +6.67% |
Net Income | 1,500,000 | 1,800,000 | +20% |
Total Assets | 10,000,000 | 10,500,000 | +5% |
Total Liabilities | 4,500,000 | 4,700,000 | +4.44% |
The increase in revenue and net income indicates a positive financial growth. However, a simultaneous increase in operating expenses and liabilities warrants further examination.
Internal Control Evaluation
Internal controls over cash handling and accounts receivable were found to be effective with no significant discrepancies.
Minor weaknesses were identified in inventory management controls, specifically in the area of inventory reconciliation.
Compliance with Laws and Regulations
No violations of tax laws or financial regulations were observed.
All necessary financial reports were filed on time.
Key Observations
Revenue growth is commendable, but there's a need to monitor rising operational costs.
The increase in liabilities is in line with the expansion projects undertaken during the quarter.
Recommendations
Review and strengthen inventory management controls.
Explore cost-saving measures to reduce operational expenses.
Continuous monitoring of the liabilities to maintain a healthy debt-to-equity ratio.
Our financial position remains robust with a positive trend in revenue and net income. The audit identified areas of improvement that are vital for maintaining financial health and compliance. We are committed to addressing the recommendations and ensuring the integrity of our financial practices.
