The Role and the Relevance of the Audit Accounting Firm
The term audit means to evaluate an organization, a system, process, project, and enterprise. Audit is one of the most important concepts in the accounting. In general the audits are performed in order to ratify the financial informations of the company or an organization. The agenda of the audit is to express an opinion on the person, system or an organization in question. In the case of the financial audits, a financial report is said to be fair if it is free from any of the material misstatements. It could be both the quantitative as well as the qualitative aspect. An audit accounting firm is the one that makes sure that their client’s financial statements are the ones that are fair as well as free from any errors. In the earlier cases it was only the financial statements that were scrutinized by the audit accounting firm. But now the audit accounting firms also check for the other information like the security, the performance of the information system, and the environmental performance.
In the case of the accounting, the audit accounting firm checks the fairness with which the management of the company presents its financial statements. The people in the audit accounting firm who check the validity of the statement are competent auditors or the accountants. Once the audit is complete the audit accounting firm then presents the auditor’s report. In the case of the cost accounting, the audit is done in order to get the real picture of the cost of manufacture as well as production of any article on the basis of the utilization of the resources that are maintained by the company.
It is required that the audit accounting firm that performs the audit is competent as well as honest. The future prospect of the company on which the audit is performed is based on the reports that the audit accounting firm produces.