Overview of Accounting and Auditing Services in Sri Lanka
Over the years, Sri Lanka has had consistent economic growth, with a diverse economy powered by agriculture, industry, and services. A robust regulatory framework for accounting and auditing has been built in Sri Lanka in accordance with global standards and best practices. Accounting standards are established by the Institute of Chartered Accountants of Sri Lanka to guarantee consistency, accuracy, and transparency in financial reporting. Accounting is essential in delivering accurate financial data that helps firms and investors make wise decisions. Accounting and auditing procedures support strong corporate governance and help to assure regulatory compliance.
Why are accounting and auditing important?
In the business world, accounting and auditing serve critical responsibilities in guaranteeing the accuracy, integrity, and transparency of financial information. These disciplines support decision-making procedures and promote accountability by offering insightful information about an organization's financial health.
- Financial Transparency: By accurately recording and disclosing financial transactions, accounting and auditing foster transparency. Investors, stakeholders, and regulators need this transparency in order to comprehend an organization's financial situation and make wise decisions.
- Regulation Compliance: Accounting and auditing assist companies in meeting legal and regulatory standards. Organizations can prove their compliance with financial reporting regulations and stay out of trouble by adhering to accepted accounting standards and principles.
- Financial Analysis: Accounting provides organizations with precise financial data, facilitating efficient financial analysis and planning. This information aids in determining cost-saving potential, gauging profitability, and developing growth and sustainability initiatives.
- Facilitating Decision-Making: Managers can make well-informed decisions when presented with accurate financial information. Businesses can identify investment opportunities, evaluate the performance of various departments, and efficiently manage resources by analyzing financial accounts.
- Governance and Accountability: Accounting and auditing make guarantee that there is accountability inside an organization. Businesses can manage financial transactions, keep tabs on spending, and preserve an audit trail by keeping accurate financial records. To demonstrate responsible financial management to shareholders, stakeholders, and regulatory bodies, this accountability is crucial.
Accounting Standards in Sri Lanka
The Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995 gave the Accounting Standards Committee the power to recommend the approval of Sri Lanka Accounting Standards to the Council of the Institute of Chartered Accountants of Sri Lanka. Companies are expected to use these standards while taking into account elements, including the magnitude, nature of business, and capital thresholds. These standards are planned to be consistent with international reporting standards.
The four types of accounting standards that are introduced are:
- Sri Lankan Accounting Standard for Specific Business Enterprises
- Sri Lankan Accounting Standard for SMEs
- Sri Lankan Accounting Standard for Smaller Entities
- Sri Lankan Public Sector Accounting Standard
Auditing Standards in Sri Lanka
The International Standards on Auditing are published by the International Auditing and Assurance Standards Board (IAASB) of International Federation of Accountants (IFAC), serve as the foundation for Sri Lanka's auditing standards. These Sri Lanka Auditing Standards have been modified to reflect regional situations and specifications. Organizations can make sure they are in conformity with the International Standards on Auditing to a great extent by complying with the Sri Lanka Auditing Standards.
An organization's internal Audit is an impartial examination process. In order to help the organization accomplish its goals, it wants to offer consultancy and assurance services. The function of assessing the efficiency of the organization's risk management, control, and governance procedures is carried out by specialists known as internal auditors.
Internal Audit's primary goal is to give the management and BOD of the company unbiased, independent assurance. Internal auditors contribute to improving the effectiveness and efficiency of operations, lowering risks, and protecting the assets of the company by identifying areas for improvement and offering recommendations.
Additionally, an internal Audit is essential for fostering adherence to external and internal rules and regulations. Internal auditors assist in identifying non-compliance issues and recommending corrective steps to manage risks and assure adherence to legal and regulatory standards by conducting routine audits and reviews.
Accounting and Auditing Standards Monitoring Board
- The board consists of 3 members who are:-
- Registrar of companies
- The commissioner general of Inland revenue
- Director-General of the Securities and Exchange Commission
- Ten members are appointed by the ministers
- And one chairman is selected by the minister for the board.
Services offered by Enterslice
Enterslice offers the following services:
- Assisting in the creation of accurate accounting records in compliance with applicable regulations.
- Maintaining accurate financial records to offer a comprehensive picture of firm performance
- Tracking organizational expenditures and identifying potential financial mismanagement. Migrating from paper-based or outdated computerized accounting systems to cloud-based platforms to improve accessibility.
- Monthly management accounts, cash flow statements, budgets, and projections are prepared for better decision-making.
- Assisting in the preparation of annual statutory financial statements and ensuring compliance with filing deadlines.
- During the audit process, liaison with auditors to aid in the evaluation of the company's financial records,
- Providing experience in treasury and payment processing to optimize financial operations Accounting, tax, and control audits of expense claims and payment requests
- Assisting with the deployment of accounting systems such as the chart of accounts master data management and customized reporting.
- Developing accounting regulations and control mechanisms for the customer's accounting department
- Providing qualified accountants and managers on a part-time or temporary basis
- Examine accounts for appropriateness and make recommendations for improvement.
- Providing training to in-house accountants to assist them in increasing their skills and expertise
Why Choose Enterslice?
- Expertise and Experience: Our staff is made up of seasoned professionals with a thorough understanding of Sri Lankan accounting laws and standards.
- Customized Solutions: We understand that every business is different. Our strategy makes sure that our services are in line with your company's aims and ambitions.
- Focus on Client Success: Your success is our first priority. By providing insightful analysis and suggestions to enhance your financial performance, we aim to go above and beyond the bare minimum in accounting and auditing services. We collaborate with you to understand your company's difficulties and offer workable ways to solve them.
- Compliance and Accuracy: To maintain the credibility of your financial statements, compliance with accounting standards and laws is essential. Our team is knowledgeable about Sri Lanka's most recent regulatory needs and accounting standards. To ensure accuracy and compliance in all of our work, we follow stringent quality control methods.