Auditing

Auditing is the evaluation of the records and reports of an organization, system, process, project or product by a competent, independent, objective and unbiased person or persons other than those responsible for their preparation known as auditors. Auditing is conducted to ensure that the internal accounting system is marinating the approved and accepted standards, statutes, regulations or practices. It also forms a part of Quality Control certifications such as ISO 9000.Audits are a useful tool often used by owners of patents, the shareholders of a company, governmental regulatory bodies and prospective donors to institutions. With the increase in the need of auditing, there has been an expansion in the duties of auditor where they need to perform a comprehensive survey and analysis of the entire conduct of the financial and accounting branches of an enterprise. Apart from accounting knowledge the auditor also needs to have a broad understating of business and finance.Auditors are now established as a separate profession, requiring government licensing. There are different types of audits performed for different purposes.Financial AuditFinancial audit is the examination of the financial statements by an independent team of auditors to determine if they are presented in accordance with the Generally Accepted Accounting Principles. After conducting the audit the auditors present an independent opinion on whether or not those financial statements are relevant, accurate, and complete. They also represent the position and performance of the company to its share holders. These audits are also useful for tax authorities, banks, regulators, suppliers, customers and employees. Internal AuditingAn internal audit involves evaluation of the company’s risk management, reporting and control practices. Apart from the firm’s finance, it also covers all the operations of the organization. The firm can assign the task to internal accountants or other professionals well versed with the company’s functions and other relevant regulatory requirements. Internal audit also provides an independent and objective consultancy service specifically to help line management improve the organization’s risk management, control and governance.Software AuditA software audit is the process of investigating the software installed on the computers in an organization in order to ensure that it is legal, authorized and licensed. They are generally conducted with the objective of minimizing the risk of prosecution for software theft, minimizing the risk of viruses and for ensuring technical support to all users

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