Presently, the large corporations are not the only one that is subjected for an audit. Even family owned, non-profit and closely held businesses submit themselves to be audited. Audits may be conducted by either an internal or external auditor.
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The process itself is meticulous and rigid. Sometimes the actual audit schedule is not even half the time spent for the mere preparation of the task. Documentation, processes and even personnel know-how are just few of the areas to be verified. This is however different when it comes to financial audit, this part requires a more careful and particular audit process since the over all financial management of a company is being checked.
Here’s a few of the reasons why companies need an audit:
- Auditors can identify areas the processes that needs to be improved, added or omitted.
- Audits is a good avenue to assess the current financial standing of an organization.
- Bookkeeping records are examined for fraud prevention.
- Government mandated regulations can be checked whether the company has complied with it or not.