Audit Stages- Comment

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An audit is a report given from the analysis of particular business operations that are scrutinized alongside set standards, e.g., either set by governmental, regulatory bodies, or the audited business itself (Courtnell, 2020). Regular audits are key to improving organizational performance and can facilitate the organizational achievement of its mission and vision. One of the main reasons that audits should be carried out on a regular basis is to ensure that the organizational quality management systems are compliant.

There two types of audits: internal and external. Internal audits are usually voluntary, and used as quality control check to scrutinize the organizations operations against set standards that are established by government, regulatory bodies or the organization itself (Courtnell, 2020). External audits are conducted externally to the organization by an independent, qualified auditor on a none voluntary basis. The objective is to make sure organizational records  are complete, accurate and adhere to legal standards (Courtnell, 2020).

Preparing for an internal audit requires planning, e.g., sending out notifications, internal audit time schedule, and selecting an auditor to ensure synced regulatory requirements match appropriate regulations and ensure all records are in compliance when an external audit occurs (Blasko, 2016). During external audits the agency engages with the auditing company to establish details, such as the level of engagement, procedures and objectives. Financial records and other information necessary to conduct their audit will be provided by the organization for evaluation of accuracy of the financial statements, including verifications of income sources and operating expenses, e.g., account receivables with receipts from customer and vendor orders (CFI, n.d.)

References

Blasko, A., (2016). What I Learned Through Surviving an Internal Audit https://www.pilgrimquality.com/blog/what-i-learned-through-surviving-an-internal-audit/

CFI, (n.d.). Audit An Examination of the Financial Statements of a Company https://corporatefinanceinstitute.com/resources/knowledge/accounting/audit/

Courtnell, J. (2020). Audit Process: 5 Expert Steps for You to Get Your Audit Right https://www.process.st/audit-process/