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Financial Audit

Overview of financial audit

Mexico Securities Exchange Committee regulates the registered listed companies must receive the financial audit. Furthermore, the large-scale companies, which have the capital more than 79,000,000 pesos and the number of employee is more than 300, and the related companies of large-scale companies are also necessary to receive financial audit.

 

Contents of financial audit

The financial audit conducted by external auditors should be made one time for one year. However, listed corporations and large-scale companies are necessary to receive medium audit and final audit for two times. That is because the accounting system of Mexico is based on American accounting system in the past.

Medium audit is conducted in the middle closing and the audit has little risk without confirming the balances of receivables, payable, cash and debit, etc.

Final audit will be conducted in the end of term. In the phase, not only confirms of receivable, payable, ending of inventory and other assets or liabilities is required, even whether lawyers or law offices intervene in cases on trial will be audited. According to the facts of audit, auditors will make audit report.

 

Audit report is made according to Mexico Accountant Committee that regulated the Accounting Standards. The standards of contents of financial audit are almost same with international audit standards.

There are fours types included in the opinions of auditors.

(1) Unqualified opinion

(2) Qualified opinion

(3) Adverse opinion

(4) Disclaimer

 

Tax audit in Mexico

The characteristic of audit system in Mexico is that both financial and tax should receive the audit so that the financial and tax audit will take some weeks. According to regulates, listed companies and large-scale companies can submit Dictamen Fiscal to SAT. Before 2014, it is a liability to submit it but it is freer after 2014. However, the corporations, which have the profit more than 644,599,005 pesos, even they do not submit the Dictamen Fiscal but they have to submit Declaration Information. Hence, the corporations satisfied the conditions of submit have to submit it one time for one year.

 

The cases that needs audited financial statements

・  Audited Financial Statements required by SAT

・  Apply for financing to bank

・  The necessity of review of financial statements becoming to the targets of M&A

・  Other cases

To learn more about our incorporation assistance and a range of services of financial audit in Mexico, send us a message or call us at +81-3-5369-2930.