What Is Auditing
Auditing is a systematic process of confirming, substantiating and giving assurance services that a process of collecting, recording and valuing economic transactions abide by a standard of care, a regulation and other body of rules. This accounting tool finds whether the financial statements of a particular company or organization is accurate as well as without a trace of deceit.
Why Auditing Is Important
Discover Errors Or Frauds
As company audit involves a detailed verification of accounting records, which helps greatly to find out frauds and errors while it promotes a moral check on the employees & workers through which their efficiency may be determined as well. In addition to this, audit can motivate the workforce to maintain the efficiency leading to boost their performance level. Apart from these, it is with the help of audit that the embezzlement of finance or goods as well as manipulation of records can be identified as well.
Effective Tool For A Business Management
An audit is an effective tool for a Business Management, since internal audit is conducted so as to make sure the policies are being followed. This allows to make valuable ideas for improvement as well as to formulate future policies of an organization or company. Aside from this, audit helps management to review the policies from time to time as well.
Gain Confidence In Investors And Shareholders
Investors and shareholders own the organization, but will not be closely involved in its day to day running in some cases. Audit is of great value to gain confidence in investors and shareholders of a joint stock company. As the audited statements are very much useful, the shareholder and investors can make sure whether or not they need to invest capital.
If you are looking to hire company auditors in Pune, then you should evaluate it thoroughly instead of hiring a firm based completely on its name, and make sure that it is well-qualified and has huge experience in this industry. Remember, an audit can take weeks or even months, depending on the size and complexity of your company being examined. When the hired company auditors team has completed auditing work, the team prepares a report. The most favourable and unqualified means that the materials were in order and met all auditing needs while qualified means that most, but not all materials were in order. Whereas the worst means that the statements do not accurately reflect the condition of the company.