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Accounting audit

Accounting audit or accounting audit can be defined as the organized process through which the accounting records and reports of a specific organization are detected by specialized and impartial persons other than those who prepared those reports and accounting records, and the importance of accounting audit began to increase in the presence of major institutions and organizations In which the accounts of the owners and the accounts of those organizations are separated, and in the audit process, specific procedures are carried out in accordance with generally accepted accounting principles, in addition to ensuring the fair presentation of accounting information, and the financial audit is divided into two types: internal audit and external audit, and in this article the importance of auditing will be addressed interior.

Internal audit process

Many large organizations have an internal audit department, where these organizations have more complex financial operations than small organizations, and this department is entrusted with many tasks through which the importance of internal audit becomes clear, and the director of the internal audit department works on scheduling the tasks for the internal audit team In order for the audit process to proceed as required, the importance of internal audit can be summarized through the following:
  • Do what is possible in order to protect the company's assets and property, and increase the awareness of the organization's management in order to raise the efficiency of internal control over everything related to the organization financially and administratively.
  • Follow up on the ongoing operations in the organization and ensure that there is no breach in the accounting operations by adhering to the financial and regulatory laws and norms and applying them to all financial and accounting records in the organization.
  • Detecting the existence of fraud, deception, forgery and accounting fraud that aim to mislead those to whom financial statements are submitted, and not to disclose any financial data related to fraud or financial fraud until after ensuring its inevitability in order to arrest the perpetrators.
  • Laying the foundations for assessing potential risks in the organization and giving priority to financial risks of material importance.
  • Establishing adequate financial control over all departments of the organization by the internal audit team, and emphasizing the need to follow up the internal audit work with caution, especially in the departments that are more targeted in the internal audit process, where all financial and accounting documents related to those departments are collected and disclosed to ensure that no The existence of a conflict or defect in the financial statements, which facilitates the detection of errors by the internal auditor before the external auditor sees them. The internal audit may take place on a daily, weekly, monthly or annual basis.
Internal audit process
Internal audit process

Types of internal audit

There are many types of audit that apply in organizations of all kinds, whether this audit is financial or administrative, and the types of audit can be divided in general into the following:
  • Compliance audit: This type of audit is common in educational institutions and aims to find out the degree of compliance with internal regulatory standards.
  • Structural audit: which is carried out through a detailed financial analysis of the costs of constructing a building or implementing a specific project to consider whether the amounts paid are reasonable or not.
  • Financial audit: It is the most common type of audit that examines the accuracy of the financial statements related to the organization and is performed in an impartial and independent manner.
  • Information systems audit: which reveals the integrity and strength of the software used in processing financial data, and to identify and remedy technical problems in these programs.
  • Investigative audit: which is concerned with a specific case related to a department within the organization or a specific person due to suspicion of a case of violation or fraud of the law, where evidence is collected to reveal the offender or rule his innocence.
  • Operational audit: which aims to evaluate the operational processes within the facility and that they are conducted according to what was planned in advance in order to reach the objectives.
  • Tax audit: which reveals the correctness of information and tax payments, in addition to the fairness of numbers that reflect profits and that result in specific tax payments.
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  • PPT Infographics
    PPT Infographics September 3, 2022 at 10:49 AM

    This article contains a great deal of significant data. I'm stunned by the nature of the data and furthermore it is a helpful article for us, Thanks for share it.Audit Process Infographics Collection in USA

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