Audit of the level of efficiency of an enterprise’s investment project is an important task for every company that wants to increase capital through investment injections.
An investment project is a justification of economic feasibility, timing and volume of capital investments, including project documentation developed in accordance with the laws of Ukraine and approved by law, as well as a description of measures for the implementation of investments.
Audit is an independent review of accounting and financial statements to form an opinion on the reliability of the studied documentation.
How successful an enterprise that conducts an active investment policy depends on the organization of project selection and audit expertise. It is at the stage of deciding financing a project that mistakes are made and, as a result, mistakes cause the loss of invested funds. To avoid such risks, the investment project must pass an audit, the results of which will be calculated the feasibility of investment activities with this project.
How investment projects are audited
During the audit of an investment project, an independent expert performs an in-depth financial analysis of the organization, studies risks based on the data provided in the business plan, which considers key elements of risk and searches for methods to prevent their occurrence.
Audit of investment projects is a multi-stage scheme consisting of such stages as:
- preliminary examination;
- the main examination;
- the final analysis.
Pre-audit evaluation criteria are determined, the minimum level of complexity, invited experts, work on getting the integral index of efficiency of the project at the end of the analysis. To achieve all the set goals, the method of expert assessments is used, and a list of criteria (with different levels of significance and depending on their values) is created in the form of tests.
The main expert analysis of the investment project allows you to get the final integral indicator of the efficiency of the object under study, on the basis of which an expert opinion will be drawn up on the feasibility of investing in the project.
The last stage is to study the results obtained and make a decision on full or partial investment in the project, or complete rejection of cooperation with the organization.
An audit of an investment project is extremely important for a potential investor who is interested in effectively investing their funds and increasing their capital in the future. The audit will answer the question is it appropriate to invest money in this project? Also, the examination will allow you to determine the problem areas of the project and possible risks.
Kasyanenko & Partners Law Company has extensive experience in conducting financial audits of investment projects and is ready to answer all clients’ questions.