Most people listen to the word audition, but we rarely know what it means. If you are also trying to understand what the check is, you are in the right place. Audit is essentially an accounting method in which the financial records of an organization, company or person can be accurately verified to be accurate and accurate.
Most of the taxpayers are afraid of controlling the Internal Supply Service, while unfair organizations are afraid of independent controls as they may reveal the abuse or embezzlement of their funds. Audit helps to preserve the company's integrity and reassures investors and employers of the financial position of the organization in which they work.
There are basically two types of controls. These are:
* Internal Checks
* Independent Checks
Checks are usually performed without any fear.
The company's internal audits are usually tied to the entity's accounting department. It can be seen that the various companies carry out regular internal audits to ensure that the various finances are kept in order and whether the company's public trading is smooth and whether the reports are available to shareholders.
An external or independent audit is fundamentally performed by a third party as a professional accounting organization providing external auditing services.
In both cases, you will examine your organization's financial records, including bank statements, accountants, tax information, payment rolls, official published reports, internal financial reports, receivables, and payable invoices. At the time of the audit, the company's records are thoroughly investigated to look for any inaccuracy and inaccuracy to improve and remedy them.
Checks are very important for most companies and organizations. There are several reasons for this.
Verification usually detects simple accounting errors. In addition, at the time of the audit, the offending issues, such as spoiling the funds (if any), will also be centered. Financially financially, organizations usually make poor financial decisions to save their organization and make these decisions with a very close scrutiny.
This is so that an audit also reveals when a company is on the verge of bankruptcy because of the high abuse of funds. Examples are for example WorldCom and Enron when such deviations are detected through controls.
Normally, if any inaccuracy is disclosed through an independent audit, the auditor corrects the company in the final report. In some cases, control is ordered by an external body, such as the Exchange Committee, who also receives a copy of the audit report.
So, in summary, companies are audited to remove inaccuracies and prevent abuse of resources available to organizations.
Source by sbobet