The auditing process involves an auditor examining a company’s financial and accounting systems. These auditors are independent of the underlying company. Similarly, they can be external or internal based on the type of audit. During audits, auditors perform various procedures and gather evidence to support their work. Documenting these procedures …

Internal controls refer to the rules and procedures within a company to ensure the integrity of financial and accounting information. These controls are essential to running a company. Similarly, they help with business continuity and ensure the accuracy of the financial reporting process. Internal controls are also a vital part …

Auditors examine a company’s financial statements to provide an opinion. However, they must support this opinion through audit evidence. Auditors must collect this evidence to draw reasonable conclusions regarding the fairness and truthfulness of the financial statements. Usually, auditors use various methods or techniques to gather audit evidence. These primarily …

The term auditing is synonymous with the external audit process. In this process, independent auditors examine a company’s financial statements and provide their opinion. However, other areas within auditing exist, which can also be crucial for companies. One of these includes compliance audits. These audits can be critical in avoiding …

Companies and business report their performance for a period using financial statements. When preparing these statements, their management makes several claims. During the audit process, auditors must verify those claims. Based on this verification, they must reach a conclusion in the form of an audit opinion. This process relates to …

For most companies, external audits are mandatory. This process involves independent auditors assessing a company’s financial statements. Based on that, they conclude whether those statements include material misstatements. However, companies must also examine their internal processes. This process falls under internal auditing. Within that process, companies may conduct operational audits. …

There are many types of audits that companies may go through. The most common of these include an external or statutory audit required by laws and regulations. Being a taxpayer, companies may also fall under tax audits. These audits also apply to individuals or any entity that may be considered …

During audits, auditors can use various techniques or methods to obtain audit evidence. These methods come into two categories, including the test of controls and substantive procedures. Substantive procedures have two types, consisting of analytical procedures and the test of details. Within this process, auditors can use several techniques. Two …

An auditor’s opinion is a statement that auditors provide after auditing a company’s financial statements. Usually, this process involves examining these statements and collecting audit evidence. Based on this process, auditors come to a conclusion to form an opinion. Usually, this conclusion entails ensuring the financial statements are free from …

The auditing process requires auditors to collect evidence that supports their work. During this process, auditors must ensure the evidence is sufficient and appropriate. This evidence then forms the basis for the auditor’s report. Apart from the client’s supporting documents, auditors must also possess proof of their plan and the …