How can economic expertise help me, as a new director, to assess the condition of the entrusted enterprise?

Economic expertise is an examination of the financial and economic activities of a business entity from various angles: accounting, economics, finance, taxation – and analyzing the correctness and accounting for financial transactions. Economic expertise should be distinguished from an accounting audit.

Economic expertise allows identifying violations in the financial and economic activities of organizations and determining the causes and methods for hiding them, competently solving various situations requiring the participation of an economist.

The expert economist examines various accounting documents, accounting and reporting, and other documents that can help in resolving a disputed situation. All carriers of economic information can be objects of economic expertise. Of course, the conclusions of economic expertise should be of interest to the manager. Moreover, non-judicial economic expertise can be conducted at the request of any individuals and legal entities.

Is the economic examination always connected with the investigation of cases in court or can you order it at your enterprise? Does she explore the entire organization or the opportunity to analyze individual aspects of the activity?

Economic expertise is divided into non-judicial and judicial. Non-judicial economic expertise has a non-procedural form. Its holding can be requested by any natural and legal persons or appointed at the request of a lawyer. The act of non-judicial accounting expertise is referred to as an expert research report. He may be presented by the customer to his opponents, so as not to get involved in a long lawsuit, but to enter into a settlement agreement. Judicial economic expertise, by contrast, is endowed with a procedural nature. In this case, the economist will be appointed by the court or the investigating authorities. The results of judicial economic accounting expertise are presented in a certain expert opinion.

The criteria for the selection of other types of economic expertise are the possible directions of research:

Accounting expertise examines conflict situations in the business of an organization, based on information from accounting and reporting, if an investigation is conducted in relation to them. Its task is the elimination and prevention of offenses in the financial and economic activities of organizations. Accounting expertise checks the correctness of the accounting operations, the quality of the audits performed, the circumstances of the occurrence of shortages and surpluses, issues related to material damage, the status and the possibility of improving accounting.

Financial and economic expertise assesses the financial condition of the organization, analyzes the financial results of its activities, the reasons for the formation of debt, reveals how well business transactions are documented.

Financial and credit expertise establishes deviations, violations in the field of financing and lending.

Engineering and economic expertise determines the effectiveness of innovation.

Can I check the correctness of accounting in my organization with the help of accounting expertise?

Yes you can. Accounting examination is an economic examination of the circumstances of an organization’s business, which is based on an analysis of accounting and reporting. Accounting expertise can be performed on behalf of the head of the enterprise or at the request of a lawyer to check the accounting, in this case it is non-judicial. Judicial accounting expertise is appointed for the disclosure of economic crimes at the request of the court, the investigation or the prosecutor’s office.

The purpose of the accounting expertise is to diagnose the financial health of the organization. Depending on the specifics of your enterprise, it can be specified, for example, in the following tasks:

Analysis of the compliance of documentation of business operations with the rules of accounting;

Verifying the correctness of the findings of the previous audit;

Identification of errors in reporting and disclosure of their consequences;

Determination of losses incurred by the organization;

Recovery of corrupted or missing accounting information, etc.

Is it true that accounting expertise checks only documents?

Accounting expertise examines not only a variety of accounting documents, but also material materials: machines, equipment, etc. Accounting documentation in this case includes: financial statements, primary documentation, free intermediate registers, electronic accounting materials, inventory, and so on.

The subject of accounting expertise is business operations and the accuracy of data on them in accounting and reporting, which requires special training of an expert accountant for coverage. If the resolution of a situation is possible without an expert opinion, but requires special knowledge, the expert accountant can provide written advice.

It all depends on the correct formulation of questions to the expert. If you are interested in checking record keeping, then, probably, it suffices to study electronic and paper documentation. If we are talking about depreciation, repair, production capacity, etc., then it makes sense to check the availability and condition of machines, vehicles, office equipment, etc.

What are the competence limits of an accountant expert?

Although the accountant-expert touches upon various economic aspects of an enterprise when conducting an accounting review, some issues fall outside its remit. Thus, in the course of the accounting expertise, it is possible to point out the incompatibility of any actions with the legislation, however, only the court decides the question of guilt or innocence. Conformity of actions of the manager to the legislation on the questions which are not demanding special accounting knowledge is defined without appointment of accounting examination. If the expert receives questions that go beyond his special knowledge, or for which the current level of science does not offer answers, or incomplete or insufficient materials for accounting expertise, he will compile and send the expert examination a reasoned report about the impossibility to issue an expert opinion.

It is important to note that, according to the Code of Criminal Procedure, the expert accountant does not have the right, without the knowledge of the investigator, to communicate with the participants in the criminal process on topics related to the examination, and independently collect materials for the accounting examination. If he needs to talk with the case, he turns to the investigator, who organizes the interrogation in the interests of accounting expertise.

What to do if during the investigation of one case it is required to conduct several economic examinations in one enterprise?

Economic expertise studies mainly documentation, that is, in this case, the same object should be examined by different experts. This situation has two solutions. You can assign a consistent conduct of accounting, financial and economic, engineering and economic expertise. It will probably take more time, but it will allow to compare the results of examinations, to compare different views. If experts of different specialties work independently, but at the same time, this can create inconveniences due to the need to study the same sources of economic information.

The second way is to appoint a comprehensive examination, making a commission for economic expertise of different specialists. Such a commission for economic expertise will be able to effectively solve general, integration tasks, for example, to conduct an economic balance sheet analysis.

Our company passed the tax audit. We have a number of controversial points on the alleged violations by us. Is it possible to challenge these facts with the help of tax expertise?

Tax expertise is an analysis of all components of an organization’s taxation. It is carried out by examining documents containing information about the financial and economic activities of the taxpayer and the tax authority, based on the norms of tax law.

The purpose of an independent tax examination is to resolve controversial issues regarding the calculation and payment of taxes, tax payments and obligatory deductions to extra-budgetary funds.

Legal expertise of decisions and actions of tax authorities provides for:

Legal examination of documents from the tax authority and drafting responses to them,

Fixing violations made by employees of tax authorities during tax audits,

Preparation of objections to the tax audit report, etc.

Specialists conducting tax expertise will help you look at your company through the eyes of a tax inspector.

What is the difference between accounting expertise and documentary revision?

Documentary audit is a form of economic control. She is appointed until the initiation of criminal proceedings. The auditor does not give a subscription for responsibility for giving false testimony and considers all documents of the organization being checked, unlike the expert.

In the course of accounting expertise, like any other, the expert answers specific questions put to him. The expert accountant has no right to deal with issues beyond his competence. He does not even have the right, without the knowledge of the investigator, to communicate with the participants in the criminal process on topics related to the examination, and independently collect materials for the accounting expertise.

The results of the audit can cause a criminal case, but the evidence for this case should be obtained by already accounting expertise. An accounting expert can be a participant in the process, the auditor is only questioned as a witness.