Audit is the investigation or assessment of various books of accounts by an auditor followed by physical checking of inventory to make sure that all departments are following documented system or recording transactions. It is carried out to assure the accuracy of financial statements provided by the organization.
Audit services are very necessary for your business however; many companies find auditing quite intimidating as it involves an elaborate and tedious process, some even completely ignore it and these companies do not gain anything but they invite more trouble for them. If you have systematically sorted and documented your records and journals, conducting audits imply shouldn’t be a problem for you. Audit can help your company be fully prepared and up to date.
Now, let’s look on the audit services which are important for your business:
- Financial Audits: This audit function develops audit programs to assess, evaluate, and give recommendations to management regarding accounting and financial reporting of transactions and activities. The objective of financial audit is to ensure that the financial activity of your organization, department or unit is completely and accurately reflected in the appropriate financial reports.
- Operational Audit: The function of operational audit is to assesses risks and evaluates internal controls of operational systems for departments, units, and functions. The objective of this audit is to evaluate the use of resources available to the department, unit or function to determine if management’s objectives and goals are being met in the most effective and efficient manner.
- Advisory and Consulting Engagements: It includes review of existing business processes and strategies, as well as implementations. It also includes evaluation and advice on policies, procedures, process enhancements, and any management requests for reviews of areas considered mutually critical.
- Compliance Audits: The role of this audit is to develop audit programs for your business to assess, evaluate, and make recommendations to the management. The compliance audit evaluates whether the compliance program promotes a culture that fosters ethical and compliant behavior with adequate internal controls that effectively prevent and/or detect violations of laws, regulations; and ensures that compliance expectations and responsibilities are timely communicated to departments and employees.
- Information System Audits: This audit function develops audit programs to assess, evaluate, and make recommendations to management regarding the adequacy of internal controls inherent in the University’s information systems, and the effectiveness of the associated risk management. It assesses the extent to which automated information processing systems, technology, architecture and processes produce reliable and accurate information, and are in accordance with University policies and procedures, and applicable laws and regulations.
- Internal Audit: Internal Audit is important for improving organization’s governance, risk management and management controls by providinginsight and recommendations based on analyses and assessments of data and business processes. This audit provides value to governing bodies and senior management as an objective source of independent advice.
So, these are the audit services which are very important for your business to run successfully and also by complying with all the laws.