ACCOUNTING AUDIT

Auditing

Auditing is the process of reviewing and investigating any aspect of a business, whether financial or nonfinancial. Auditors are fully trained to spot areas of needed improvement, potential dangers and incidents of unethical conduct in their area of expertise. Audits can disrupt the normal flow of business in a company, but the ability to spot and address potential weaknesses can outweigh any temporary losses of productivity. Among the range of issues audits can review are human resources policies, operational procedures, quality or safety policies and, of course, accounting audits.

Accounting Audits

Accounting audits bring these two distinct concepts together and can convey significant benefits to small and large businesses alike. An accounting audit by definition is a systematic review and investigation of the policies, procedures and systems put in place to record, store and present financial data within a company. Accounting audits cover the full range of the accounting cycle, looking for inconsistencies, inefficiencies, errors and incidents of unethical conduct at all steps in the process. Audits begin by analyzing the systems put in place to ensure that the accounting department receives all transaction documents in a timely manner. Audits review the accounting system in depth to ensure that all necessary accounts are present and maintained accurately. Accounting audits also review financial statements and the processes used to prepare financial statements.