What is an audit cycle?

Audit cycle is an accounting process that auditors use to review the company's important financial information. Companies use audits to verify their financial information is accurate and valid before publishing the financial statements. Internal audits can be carried out by accounting staff of the Company for the purpose of reviewing proceedings. External audits are usually carried out by public accounting companies or private certified public accounting (CPAs) to provide an objective view of the company's financial and accounting processes. The audit cycle usually includes a few steps, such as the process of identification, audit methodology, field work, administration control and corrective audit process. This identification process usually includes meetings of the company's managers with auditors and discussions about the highest risk areas that must be audited in the Financial or Accounting Department. Administration of companies will also discuss the goals that must be achieved during the audit cycle. Once this step is docknčnčen, auditors move to the Audit methodology phase. The auditors may decide to talk about the company's employees to determine how well they are trained and understand their role in the accounting process. The auditors can also apply for some financial information from the accounting department that will be reviewed during the terrain phase of the audit cycle.

The audit work phase is the place where most of the work is performed by auditors; They will usually test accounting samples taken in the methodology phase. When checking these samples, the auditors will wear any changes from the Amanual accounting principles. If too many variations are found in the initial accounting samples, the auditors will be forced to pull the second test sample. Once the second sample is reviewed, the auditors will go to the administration audit meeting.

During the meeting of the Audit Cycle Management Auditors will check the information about accountingQuestions discovered during the field work phase. Auditors can also propose changes to the company's internal accounting processes to limit the number of errors or incorrectness in future accounting information. Significant changes resulting from the wrongness of the material may require the auditors to plan the corrective audit.

The audit cycle uses corrective audits to verify that any changes to the proposed auditors have been properly implemented by the company. Correct audits usually test changes to the proposed auditors during the initial audit administration. As soon as the company passes through the remedial audit, the Cztratit audit audits and give an opinion on the company's accounting processes.