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:
Accounting audits are considered to be the most authoritative controls on the performance of the various companies as well as individuals.