Auditing Assignment Answers
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Why is auditing necessary?
It is usually undertaken to gauge profit and loss of an organization and to evaluate balance sheet. The purpose of auditing is to test the authenticity and correctness of information shown by account books of a particular organization.
Different types of Audit
- External Audit
- Internal Audit
- Forensic Audit
- Tax
- Information System Audit
Steps of Auditing
- Assessing obtained information –
This is the process of evaluating financial statements and records of an organization.
- Finding a correlation between evaluation and established criteria –
This is the second step which involves establishing a connection between the financial statements and established accounting guidelines.
- Communicating results to stakeholders –
This is the final step which involves communicating the audit results to stakeholders of the company.
Role of an Auditor
An auditor is responsible for conducting a detailed and methodical analysis of the accounting and financial records of an organization. They are liable to determine whether accounting standards and framework met by the organization.
The examination is expected to show an accurate and fair image of the company while recognizing deviations and manipulation present in financial statements. Additionally, an auditor is to voice an opinion based on the examination of records, which hold strategic value in the assessment of the organization.
Why students need online assignment help?
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