What is the audit policy?

The

Audit principle describes the standards and instructions used by the Company in performing internal audits or undergo an external audit by a public accounting company. This policy helps to ensure that every accountant in society knows and understands his role in the audit process. The audit policy that meets the instructions of the government agency may also be introduced. For example, publicly held companies in the United States (USA) must meet the requirements for the Audit of the Sarbanes-Oxley Act, which is a law that the US government has introduced to investors and helps prevent financial fraud or scandal. American companies are also obliged to use a public accountant approved for public audits by the Public Company's accounting Council (PCAOB). In other countries, there are similar groups to the Audit Council (APB) and the Council for Financial Reporting (FRC) in the UK. Audits compliance with regulations ensure that the companyMings followed specific standards to maintain certification or license for their business operations. For example, the health and safety associations (OSHA) (OSHA) in the United States or similar organizations commonly use audits of compliance with regulations to ensure that their members maintain quality operational processes. Companies may also have to use the audit policy in maintaining general insurance contracts or bond guarantees.

Audit principles of internal functions usually outlook what specific accounting functions are checked by internal auditors and which employees will perform an audit. An internal audit is usually an informal process used for business management purposes. Company and accounting managers can use internal audits to ensure a specific control room that limits the ability of employees to commit fraud, embezzlement or abuse the FinnAnni accounting of the company.

The principles of external audit may differ from the internal audit policy. External audits are usually formal accounting processes to provide external investors or parties concerning the total financial health of the company. The principles of external audit usually include information on the public accounting company performing an audit whose processes will be audited, internal checks that will be reviewed by auditors and frequencies of external audits. The audit principles can also provide instructions for corrective audit, a formal type of audit used to review previously unsuccessful external audits.

Audit principles may also include definitions or instructions for auditors on the significance of accounting or errors found in the company's accounting information. These definitions and instructions usually monitor Industry accounting standards set by different public accounting companies. If there are no external government requirements, companies may usually developNout the audit policy to determine the standards of internal materiality and specific instructions for repairing any such mistakes.