What is the audit process?

The audit process is specific steps used in the audit of financial, operating or compliance. The steps may vary depending on the company and type of audit services required from the external accounting company. Most companies have financial audits once a year; Operating and audits of compliance with regulations are usually performed on the basis of need. The audit process usually includes three basic steps: planning, field work and reporting. The fourth step, subsequent monitoring, may be necessary if the company fails in the initial audit process.

Planning is usually the first phase of the audit process. Usually, the company management works with auditors on the type of audit services needed for their company. Typical audits include bank, internal checks, fixed asset or complete financial contracts. Audit fees are often discussed at this point because each audit can have different levels of involvement. Higher levels of audit services usually require possibleOvu time and efforts of auditors, resulting in higher fees. Once the audit service services are decided, the audit process usually moves to the field work phase.

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phase of the field process is a practical inspection of financial and operational information auditors. The width and depth of the field depend on the type of audit and the number of errors found during the work phase. The auditors select a sample from the company's financial or business information and test it against accounting or business policies. Significant deviations or failures usually lead to the auditors to choose a second sample to see if there are more errors. If there are more errors, the auditors usually indicate the company's entire process regarding specific information as failure. If the second samples have no mistakes, the auditors often only notice how many deviations or failures wnalezeno in information. After completion of the field of work in the field with the auditors obeIt will start part of the audit process report.

The

Stage of the Audit process report usually includes auditors discussing their findings with the company management. This meeting gives the lead a chance to question all findings and ask the auditors to re -consider the items found during the field phase. The auditors may request further management information during this meeting to meet the documentation requirements. Once the company's administration and auditors are in accordance with the initial audit report, the auditors usually prepare the final report on the audit that can be issued to external stakeholders.

The subsequent phase of the audit process is a corrective audit performed on companies that do not reach the passable audit score. Large or publicly held companies usually accepted an acceptable audit score for each department in their operations. Smaller companies may regulate the remedial audit that is not unusual; Correct audits are simply expanding the process.