The Importance of Auditing
Many businesses all over the world would collapse if they are not monitored well by experts who do the auditing of how the business is run and by so doing it is possible to know how much has been injected in the business and how much profit is being made or if there is a loss.
Auditing is and independent systematic examination of vouchers, documents, statutory records, accounts and books or an organization to make sure that the financial statements are well.
Auditing ensures that the books of the accounts are maintained properly and as the law requires so as to ascertain what amount of tax should be paid to the concerned authorities and auditing currently has become such a phenomenon in all companies as well as in the public sectors.
When an auditor does his job he recognizes and perceives the books before doing the examination and gets evidence by evaluating and formulates some opinion depending on what has been communicated by the audit report.
Auditors give assurance to diverse stakeholders by ensuring that the books of account that have been audited are free from misstatements.
Audits may be done in various matters including energy compliance, water management, project management, quality management, internal controls, compliance audit and secretarial management and all audits may be done on financial information that relates to a legal person.
Auditors evaluate effectively and increase the efficiency of the management risk as well as the control and this makes it easy to govern the corporate process of the subject matter.
The term audit hails from the Latin word audit which is to say to hear and in the old times when people used to use manual books the auditors would listen to accounts being read loudly to them and would use the hearing to ensure that the personnel in an organization were not fraudulent or negligent.
The most vital duty of any auditor is to do the detecting of fraud and also very the details of bookkeeping to ensure that they are correct and because if numerous incentives which include some kinds of fraud, misspelling and taxation it is vital to have qualified auditors because that is what the law requires.
Auditors get information about the finances of any entity and assist in getting the proper records of businesses and companies and the financial audits are used to make sure that the books are reliable and that the information is valid and makes the assessments of any internal control system.
Auditors ensures that there is reasonable by providing material statements which shows whether there is an error in book keeping and the statics given helps to get proper financial statements and financial audits which are prove that the audit has been done and that they are free from material misstatement.