Accounting and Audit of Loans and Borrowings (the case of “Ecofish” Ltd)

The aim of the study is to consider the accounting and audit procedures for loans and borrowings at the company LTD “Ecofish”. To achieve this goal, the first chapter of this work defines the nature, goals and objectives of accounting and audit of settlements on loans and borrowings, the legal regulation of these operations in accordance with RAS and IFRS. The second chapter provides an economic analysis of the financial and economic activities of the enterprise, discusses the procedure for documenting, synthetic and analytical accounting of loans and borrowings in the organization. To optimize the calculations on loans and borrowings of the organization, it is proposed to switch to an overdraft or use a short-term preferential credit provided by the small and medium-sized businesses support program. An overdraft option would reduce the labor costs of accounting employees, as well as save a little on interest, but in the case of a preferential loan maximum savings on interest can be achieved. The third chapter assesses the effectiveness and reliability of the internal control system of the enterprise, the level of audit risk, the level of materiality of errors and distortions in the accounting (financial) statement indicators, develops a general strategy and audit plan for settlements on loans and borrowings. From the audit procedures and a general study of the documentation and accounting registers of the enterprise, it can be concluded that no significant distortions were found in the statements of the enterprise, accounting for loans and borrowings is carried out in accordance with the norms of the legislation in force in the Russian Federation.