Should Your Company Use The Audit Services?
Aside from companies that have a legal obligation to be audited, the employer must evaluate any reasonable quantitative and qualitative benefits it brings an audit engagement and compare them with the minutes of the auditor.
1. Introduction
We can classify the audit in three types:
* Audit
* Operational Audit
* Strategic Audit
1.1. Audit
Its basic purpose if the Balance and Profit and Loss Account of the true and fair view of the economic and financial situation of the company at any given time, ie whether such records are reasonably accurate.
Is carried out by independent professionals. This type of audit is regulated by law.
1.2. Operational Audit
Its basic objective critical evaluation of the operations and activities of a company. For example, to investigate whether an organization is wrong, if it controls the quality of the raw materials purchased by the company, if the control of receipts and payments is reasonably correct, and so on. Its field of action is very wide.
Can be performed by employees of the company itself (internal auditors) or by external auditors. Is not regulated by law.
1.3. Strategic Audit
Its basic objective critical appraisal of the company as a whole system and its future, as expressed in the Strategic Plan. Ie, evaluate the current situation of the company, where you should go and where in the opinion of the auditor. Is often carried out, usually by independent professionals.
2. Should I use audit services?
Aside from companies that have a legal obligation to be audited, the employer must evaluate any reasonable quantitative and qualitative benefits it brings an audit engagement and compare them with the minutes of the auditor.
2.1 Audit
What do you get the business?
An independent opinion that the basic accounting statements, the Balance and Profit and Loss Account, are reasonably accurate, ie, represent the true picture of the economic and financial situation of the company. Moreover, in addition, if there are significant shortcomings in the system of internal control within the company: for example, there are enough fire extinguishers in the warehouse, the collection and payment procedures are incorrect, etc..
Deepen. Think. Periodically if the economic and financial situation, as expressed in the statements is correct or not and at the same time, if there are significant failures in the system of internal control is really valuable. I regularly monitor the assets of the company, its assets and liabilities.
Is it quantitative and qualitative benefits that the audit provides the auditor’s bill? Can my resources afford this service?
Meditate objectively.
2.2. Operational Audit
The company carries out operations: Charges, payments, investments, expenses, etc.. Has in effect procedures for conducting such operations. Managers must effectively manage the assets, etc..
The auditor is operating here and now. Tirelessly monitored the effectiveness of resource management, whether the procedures of the company are correct or not, whether the controls are adequate, and so on.
Its attitude should be full cooperation with the Directorate of the company. Not a spy nor scathing critic. It helps to provide a consistent and effective management. It is an invaluable service.
But do benefits outweigh the quantitative and qualitative costs of this service? Moreover Must be operational auditors employed by the company or should I hire these services externally?
Deepen. Think. To have a good side to his expert advice on what went wrong and what should be done to correct it with a constructive spirit, is a valuable service.
Meditate objectively.
2.3 Strategic Audit
It may be appropriate for companies that have a certain size, usually with a Strategic Plan.
The auditor (auditors an interdisciplinary team of specialists led, coordinated and monitored by an auditor general) discusses the current situation of the company, where he is and where it should go. If your goals, strategies, structures and resources are reasonable. The auditor carries out a critical assessment of the company as a system. Look to the future, check out the scenarios of the Plan, the contrast with their own. Is available to the Company address, to give their best advice, supporting their opinion on experience. Is always available to the company. Regularly monitors its course and if, in his opinion, it is right or should be changed, how, when. Recommends, advises.
It is a good service.
But can outweigh the benefits provided by quantitative and qualitative audit of the service costs of the bill?
Deepen. Think. Meditate objectively.
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