Every company requires an audit in order to meet all requirements and obligations. At NUE Chartered Accountants, we provide audits at very affordable rates. However, along with the audit, it is one of the toughest and most rigorous scrutinies your company will go through.
Audit accounting explained
Audits are crucial in ensuring that financial resources are allocated fairly and effectively and that the company’s accounting is correct. An internal audit may be conducted with the goal of locating potential areas for cost and risk reduction.
When an auditor reviews key financial statements or a company’s financial results, the results are typically documented in a report or carefully prepared.
Types of auditing
1. Internal Auditing
Internal audits can be performed by groups or individuals within an organization. The purpose is to help management and stakeholders fully understand the viability of the business. Internal audits are often ordered by company owners or shareholders and may focus on the following:
– Financial accounting and reporting Compliance with laws and policies
– Effectiveness of current practices
– Operational issues
2. External auditing
External audits are conducted by impartial third parties, such as the Auditor General of South Africa and financial companies. When dealing with corporate information, auditors must follow Generally Accepted Auditing Standards (GAAS). External audits, which are often used to demonstrate the accuracy of a company’s financial and operational records, can be more formal than internal audits.
3. Financial Auditing
The main focus of financial audits concentrates on the financial health of a business. A company’s financial records, including its expenditures, earnings, investments, and assets, must be independently verified by auditors. These typically combine this data into a final conclusion for shareholders or investors.
4. Tax auditing
Tax audits are performed by SARS to ensure the accuracy of the data contained in a company’s tax return, the accuracy of tax payments, and the accurate reporting of tax obligations. Agents must be able to conduct tax audits in person, over the phone, or online, and have access to all company financial documents. A tax audit is an external audit as the representative is employed by a third party and has no relationship with the company being audited.
5. Forensic auditing
The goal of a forensic audit is to identify relevant information from the financial records of a person or business that can be used as evidence in court. Most significant accounting companies have forensic accounting departments because it is a specialization of the accounting sector. A forensic audit requires knowledge of the legal foundation for forensic audits as well as competence with accounting and auditing procedures.
The scope of forensic audits includes many different types of research. The parties may be accused of fraud, embezzlement, or other financial crimes following a forensic investigation. Examiners are contacted during the forensic review process and act as expert witnesses in court. Instances that do not involve financial wrongdoing may also be covered by a forensic audit, including disputes relating to bankruptcy filings.
The auditing process
Although each review process is distinct, most engagements follow a similar review process that generally consists of four phases:
– Fieldwork,
– Audit Report,
– Planning, and
– Follow-Up Review.
What’s in an audit plan?
The why, when, how, where, and who of audit performance-related issues are addressed in an audit plan, which serves as a road map for carrying out an audit.
A good audit design identifies all operational risks and utilizes particular audit techniques to reduce them.
What is a financial statement audit?
A financial statement that is audited by a certified accountant and deemed error-free is an audited financial statement. External auditors can evaluate financial accounts for businesses to ensure that the data contained in them is accurate and to confirm the financial viability of the company. To ensure that financial statements accurately reflect the organization’s financial affairs, stakeholders and decision-makers.
What is an engagement letter in auditing?
According to auditing standards, the contract’s conditions must be accepted by both the auditor and the client. Written agreements are required, with contracts being the most common format. Before beginning a business relationship, a contract outlines expectations in detail. This is crucial in audit engagements because the customer might not be aware of the steps required or their respective roles.
Why hire NUE Charted Accountants for your auditing needs?
We are always aware that pricing is a large factor in a competitive industry like auditing. Your audit should be much more than a mere few ticks in the right boxes to keep your regulators happy. We will add value to the audit wherever possible to present you with something of value. This is why we have gained a positive reputation for our dedication to attention to detail. This has helped us to provide our clients with a quality service, protect their interests and stay ethically independent and make for a more regulated service.
Our experienced staff makes all the difference. All productive relationships grow from honest and emphatic communication. We only ever invest in talented and professional people that provide our clients with value and professional service. From the moment our staff join us, all our trainees are mentored through the large range of corporate processes we follow, much more so than most other firms are willing to invest in their staff’s lives.
This type of nurturing environment provides our staff with the training and skills they need to become business savvy and helps them to identify any cracks in our clients’ companies which are not covered by the statutory audit.
Auditing fundamentals with NUE Charted Accountants
Our policy is to keep the same staff with the same company over the years as they will be able to build relationships with our companies and provide them with a better service. This will be possible because the staff will get to know the companies, they work with and will be more likely to pick up irregularities like control weaknesses, human error, possible fraud and overcharging
