Statutory audit assignment
Transparency, Legality and Control for your Company
The Statutory Auditor is a key figure in the control structure of many companies in Colombia and other Latin American countries. Its main purpose is to ensure compliance with legal regulations, proper accounting and financial management, and transparency in the administration of organizations. This service not only responds to a legal obligation in certain cases, but also becomes a tool of strategic value for partners, investors and interested third parties.
What is the Statutory Audit Engagement?
It is a function exercised by an independent professional, usually a certified public accountant, who acts as a supervisory and oversight body within the company. Its role is to verify that financial and administrative operations comply with the law, the company’s bylaws and accounting and tax regulations.
The Statutory Auditing implies not only technical knowledge in accounting and auditing, but also an ethical, objective and impartial attitude.
How does this service work?
The Statutory Auditor is appointed by the shareholders’ meeting, board of partners or equivalent entity, and its functions are regulated by specific regulations such as the Code of Commerce and Law 43 of 1990 in Colombia.
Once appointed, the Statutory Auditor performs functions such as:
Financial and accounting audit: Periodic review of the financial statements to verify their veracity and compliance with regulations.
Legal and fiscal control: Verification of compliance with tax and legal obligations.
Report to the governing bodies: Submission of objective reports on the state of the company, identifying risks or irregularities.
Management oversight: Evaluation of the performance of the administrators in the management of resources.
Signing tax returns and other official documents.
What is the purpose of the Statutory Auditor’s Office?
To guarantee the reliability of financial information.
To protect the interests of partners, shareholders or cooperators.
To avoid fraud, irregular acts or improper handling of resources.
Comply with the legal provisions that require this figure.
Strengthen the company’s image and reputation before third parties.
In addition, the statutory audit provides recommendations to improve efficiency, internal control and decision making.
