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Accounting Audit is a must for the Organizations looking towards Positive Growth

The word ‘audit’ by definition means an evaluation of an individual, process, system, project, product or an enterprise. The main aim of an audit is to give an assessment on the entity under question. However stringent the rules pertaining to the audit might be, it can only give a reasonable assurance on the validity of the statements provided by the organization or the individuals. When talking about the accounting audits, it only means that the financial statements as produced by the organization are free from any material misstatement, whether qualitative or quantitative in nature. As a vital part of the accounting procedure, the traditional accounting was considered to be only a means of procuring information on the financial records as well as the financial systems of the organization. But of late, many of the other facts about the organization are also taken into consideration like the performance of all the information systems of the organization, information on the security risks, and even the environmental performance.

The accounting audits are performed by the accountants who have specialized in the field of accounting, are competitive, and independent. The agenda of the accounting audit is to check the fairness of the financial reports of the organization as well as the manner in which they are presented by the management of the company.

The accounting audits can be categorized in two fields that are both important for the well being of the organization. These two fields are:

  1. Internal Auditors: The internal auditors of a company are deployed in order to check the validity as well as the efficiency of the internal systems of the organization. The internal auditors are not considered to be independent of the company they perform the audit for yet they are supposed to report directly to the board of directors and not to the management to reduce any risk of pressure on the auditors from the management. 
  1. External Auditors: These are the independent auditors that check the validity of the financial statements of the company. Although hired by the company the external auditors work as independent auditors and thus do their work free from any obligation. Their aim is to check whether the financial statements are free from any material misstatements due to fraud or error.
Accounting audits are considered to be the most authoritative controls on the performance of the various companies as well as individuals.