What is an audit?

Article Abstract:

An audit entails the examination of a firm's financial statements and books by an independent expert, an auditor, resulting in the auditor issuing an opinion on the financial statements. Financial statements are part of a firm's annual report that delineate the firm's trading performance and financial position in a particular time frame. The responsibility for the preparation of the financial statements lies with the firm's directors, and by law the financial statements must reflect what the firm's directors believe is a fair and true financial picture of the firm. The steps of an audit include gaining a thorough understanding of the firm's business, making an assessment of the quality of the firm's financial reporting and controls, and analyzing a sample of balances and transactions from the firm's accounting records.

Accounting and auditing, Financial statements

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Transaction Flow Auditing

Article Abstract:

Transaction flow auditing (TFA) is an innovative alternative to a traditional audit. It is based on dividing financial and control functions and looking at specific cycles. Looking at cycles facilitates examining points of interface and weak controls. Internal control objectives are set to test the effectiveness of the system. The TFA is broken down into general risk analysis, transaction flow review, specific risk analysis, compliance testing and substantive testing.

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Internal Auditing: An Industry Perspective

Article Abstract:

Objectivity is important for the internal audit. The internal auditor is a management resource that does not impose solutions. Internal auditing covers a broad scope of business affairs. They are in a better position to help management more than outside auditors because they are specialists in their organization. The diversity of auditor responsibilities ranging from evaluating financial systems to corporate compliance demands skills that are kept current.

Vocational guidance

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