Auditing is the process of assessing and ascertaining financial, operational strategic goals and processes in an organizations to determine whether they are in compliance with the stated principles in addition to them being in conformity with organizational and more importantly the regulatory requirements to run a successful business.
It is the detailed examination of the financial reports of an organization and is used to provide confidence for all stakeholders that the organization’s accounting reports are accurate. It also examines an organization’s (or individual’s) financial records to determine if they are accurate and in accordance with any applicable rules (including accepted accounting standards), regulations, and laws.
TYPES OF AUDITS
- Internal Audit – Internal Auditing is an independence, and objectivity consulting service which is design to add value to the business and improve entity’s operation.
- External Audit – It is type of audit service that audit firm provides Assurance Service, Consultant Service, Tax Service, Legal Service, Financial Advisory, and Risk Management Advisory.
- Compliance Audit-This audit is most commonly used in regulated industries or educational institutions.
- Construction Audit- This is an analysis of the costs incurred for a specific construction project. The intent is to ensure that the costs incurred for a project were reasonable.
- Financial Audit- This is an analysis of the fairness of the information contained within an entity’s financial statements. This is the most commonly conducted type of audit.
- Information Systems Audit- This involves a review of the controls over software development, data processing, and access to computer systems.
- Investigative Audit- This is an investigation of a specific area or individual when there is a suspicion of inappropriate or fraudulent activity.
- Operational Audit- This is a detailed analysis of the goals, planning processes, procedures, and results of the operations of a business.
- Tax Audit- This is an analysis of the tax returns submitted by an individual or business entity, to see if the tax information and any resulting income tax payment is valid.
AskMe partners excel in all types of audits and can help you in getting things done in the most precise and efficient way.
NEED FOR AUDITING
In the corporate world, companies partner with a number of third party entities like suppliers, auditors, and consultants who either advise them on their strategies or partner with them in the supply chain, or audit their financial statements or have a network of relationships covering many areas.
Company laws specify that the annual and quarterly financial statements has to be audited and the quality processes and the standards that the company follows as part of its operations be certified by independent agencies. In this respect, there is a need for auditors, certifiers, and consultants to be ethical in their dealings with corporate.
ADVANTAGES OF AUDIT
- An audit helps to identify weaknesses in the accounting systems.
- Enables us to provide suggestions for improvements.
- An audit also helps reduce the risk of fraud and poor accounting.
- An audit facilitates the provision of advice that can have real financial benefits for a business, including how the business is running, what margins can be expected, and how these can be achieved.
- An audit will enhance the credibility and reliability of the figures being submitted to prospective investors.
Sounds Overwhelming? Well you don’t have to worry about this anymore. We at AskMe have hand-picked some of the best auditors who are expert in all the above mentioned forms of auditing. They know it very well and can definitely help you drive your business.