The purpose of this process is to ensure that the organization abides by relevant laws, regulations, policies and internal systems during its operation, and at the same time ensure the accuracy and authenticity of the company's financial data.
The following is a detailed description of the audit:
1. Audit internal control system:
The audit process usually includes auditing the internal control system of the organization to determine its effectiveness and effectiveness. This includes auditing financial processes, information technology systems and risk management procedures. Strengthening internal control can help organizations prevent fraud, mistakes and abuse, and improve operational efficiency and accuracy of financial reports.
2. Audit financial statements:
Auditors will carefully check the financial statements of the organization to confirm their accuracy and completeness. They will check the data in the financial statements to ensure that they comply with relevant accounting standards and regulations, and find out any potential errors or frauds.
3. Compliance audit:
The audit also includes reviewing whether the organization complies with applicable laws, regulations and industry standards. This kind of audit is usually called compliance audit. Compliance audit ensures that the organization's behavior meets the statutory requirements to reduce potential legal risks.
4. Performance audit:
The focus of performance audit is to evaluate the operating performance and efficiency of an organization. Auditors will review the operation process of the organization and look for opportunities to improve efficiency, reduce costs and increase revenue. This kind of audit helps organizations to optimize internal processes and improve the overall performance level.
5. Internal audit and external audit:
Internal audit is carried out by professionals in the organization, who are usually internal employees of the company. External audit is conducted by an independent third-party organization (usually a certified public accounting firm). Internal audit mainly focuses on the internal control and operating performance of the organization, while external audit mainly focuses on the accuracy and compliance of financial statements.
6. Audit report:
After completing the audit process, the auditor will write a detailed audit report, including their findings, suggestions and opinions. The report is usually submitted to the company's management and board of directors to improve internal control, improve business performance and ensure compliance.