What is the audit methodology?

Audit methodology is a special set of processes or procedures used to assess the company's financial and business risk. Internal and external audits can be used to review specific information about various operations of the company. Audits generally test financial information about accuracy and validity. However, some audits focus on non -financial aspects. For example, audits of business risk audits are testing compliance with standard operational procedures. Deviations found during the audit can significantly affect the ability of society to remain in business. Audit methodologies usually consist of four parts, including preliminary risk assessment, planning phase, testing phase and output meetings. This meeting usually determines the depth and width of the Audit methodology, as the company management generally publishes the areas of the highest risk of their business. After the Auditors meeting, they usually compile their notes and write a formal agreement that indicates the scope of the audit. Audit methodology changes may require selflessnessAtný supplement to the original written agreement. Once the preliminary risk assessment phase is completed, the auditors usually start the planning phase.

The Stage of Planning of the Audit Methodology introduces auditors into any business area they will be audited. During this phase of the audit, passages are often used to familiarize with the company's employees and their specific responsibility. Other weaknesses of discovered auditors may be added to the original audit agreement. The company management usually represents auditors to the department's managers and allows auditors to freely perform interviews without unnecessary influence. This protects the integrity of the Audit methodology. Testing phase usually begins as soon as the auditors have finished their assessment of audit planning.

The test phase is the mass of the methodological process of the audit. Auditors actively check financial information or business processes to determine any breach of generally received accounting pRinci (GAAP) or internal operating standards. The sample is usually taken from large groups of information and the auditors are tested separately. If there are too many failures in the first test sample, the audit methodology may require auditors to test another group of information or simply write an initial sample such as failure or violation of the company standards. Once the test phase is completed, the auditors usually have a meeting with the company management.

The output meeting is a phase of packing the Audit methodology. These meetings allow audit audit audit results and company management and discuss all major violations or disorders discovered during the test phase. Formal views on audit are usually filed within a week of audit meetings. Companies may also decide that they are questioned during the departure meeting if violations are less or insignificant compared to the company's aggregated operations. Audit methodologies may require a societyThe seconds have a second audit if too many violations have been discovered during the first audit.