Financial auditing is the process of examining the organization’s financial records to determine if they are accurate or not. It also regulates the records according to the applicable rules and regulations. An audit can be applied to an entire organization or to a specific part or function.
Types of Auditing
External Auditing: In this type of auditing the auditors come from outside the organization to examine accounting records of the organization and provide their views personally about the organization.Law says all the public companies to externally audit the financial statements.
Internal Auditing: In internal auditing, the auditors work for the organization as the employees to examine records and improve the internal processes of the organization. The process includes internal operations, risk management, etc.
So, auditing is basically done to determine how accurate the financial statements offered by an organization are.
Students often find the concept interesting and choose to enroll in the subject for a brighter future. If your are reading this, you would be definitely one of them and are struggling with your assignment writing task. When you have multiple assignments to write, it is difficult to complete all the tasks. Writing informative auditing assignment help you get good grades from the teachers and move a step ahead towards a bright future.
Are you still wondering how to write your auditing assignment?
Here is the list of important audit terms by the experts which you can include while writing the assignment-
1.General Audit: The examining of financial records of a business by an auditor is known as auditing. Auditing is done to find out the theoretical and arithmetical accuracy of the books of accounts and report it to the business owner whether records are fair or not.
2.Management Audit: The verification of the management plans or policies in various functional areas. You need to evaluate the managerial techniques about the business here.
3.Accounting Data: The accounting data includes the journals, ledgers, and, the other records that support financial statements. It can be in computer readable form or on the piece of paper.
4.Accounting Estimate: The approximation of the financial statements is the accounting estimate. The accounting estimates are included in financial statements because some amount is uncertain.
5.Accounts Receivables: The debts that are due from the customers form the sales of products and services.
6.Adjustment Entries: Adjusting entries are made in the books of accounts at the end of the accounting statements. The purpose of adjusting entries is to adjust the expenses to the accounting period.
7.Disclosures: Disclosure means to reveal information. To reveal the financial statement disclosures, footnotes are the best way of providing the information.
8.Representation: The letter to the auditor from the management which represents that the financial statements are presented fairly. The letter is represented to the independent auditor. It is signed by the members of management whom the auditors think are responsible for.
9.Trial Balance: Trial balance is a statement showing the debit and credit accounts in the business. Trial balance is prepared after the completion of the ledger.
10.Qualified Audit Report: When the audit process is completed, the qualified audit report is made by the auditors. The report can be internally or externally audited by the auditor. It is the result to the business to make decisions on the basis of the results of the audit.
11.Validity Check: The software which checks the data input in the system. The data is compared with the type of data properly included in each input field.
Example- only letters in a field.
These are the important terms suggested by the assignment prime experts to make your auditing assignment informative and get good grades. These terms will be helpful when you start writing the assignment.