The audit and its types in accounting branch
Introduction
Accounting is the registration of all operations that are carried out within an entity, whether small or large, within this test we are going to focus on a “audit” accounting branch, which is responsible for reviewing, analyzing that Everything is being carried out in a correct way.
The audit is not only in a global way, it is not the same for everyone, since there are different types of audit from internal, external, government among others, with the audit you can know if things are done as they should, that they are not being done things that should not.
Developing
To learn more about the audit we must know the different types that exist.
- The internal audit: this refers to the fact that the company’s same workers are those who decide to review every certain period on how they are taking their accounting, without the need for someone external to ask them.
- The external audit. This is carried out by people outside those of the entity and compared to the internal this is because the authorities are required, it is carried out in a deeper way by analyzing the financial statements and in a more professional way.
The audit can be classified according to the area in which it is carried out.
- Financial audit. In this, the financial statements are mainly reviewed and all the operations that were being carried out for a certain period of time, in the same way they are carried out by professionals.
- Administrative audit. Here the administrative process is evaluated, seeing if the objectives, goals were met and if everything was based on the laws or regulations that are established and see if they are being productive.
- Operational audit. This is done by an external and professional person, but is made by request of the entity, evaluates the company to know if it is being effective and efficient.
- Government audit. This is carried out by the government of the Government and is reviewed according to government competences and according to laws.
- Comprehensive audit. Evaluate in a deep way trying to review all possible aspects to issue reports in a correct way being the performance that the company has.
- Systems audit. It is the thorough evaluation through activities, techniques and procedures, in order to analyze, verify and forge recommendations related to the planning, safety and effectiveness of computer assistance within the company, in search of the improvement of the same.
- Accountant. This is also carried out by someone external, in this it is verified that all the accounts are in the right way the debts, the income or expenses that they have, also if the company has losses or profits and see that everything is legally.
They can also be divided by specialty area.
- Tax audit. It is the type of audit responsible for examining the facts with tax character, it can be private applied to companies, shops, etc. or government applied to public institutions or to agencies dependent on the State or government.
- Labor audit. This is responsible for knowing the social and labor state within the entity to see if they run risks inside or not, in addition to knowing the obligations with which employees count within it.
- Medical audit. This is done to know the care, quality of the medical service that can be received.
Audit evidence
It is all kinds of information that the person in charge of making the audit together on everything that occurs within the entity or place where it takes place, everything that has to do with the financial situation of this is very useful, all that is very useful that from what collects will obtain conclusions and the necessary decisions will be made.
So that the audit can be good, it must have some characteristics such as:
Be useful for what the person who performs the audit can make decisions, all the information issued by the entity must be totally true, just as the auditor must be very honest with what he declares, it must be clear so that not only a person I can see what was reached.
Audit techniques
It is the means by which auditors can do a job professionally. It’s about reviewing all documents, sources (invoices, letters of change, promissory notes, checks, etc.) and more records to verify that the information provided is true, exams are made to corroborate with everything they say it is real, observe the inventories or procedures that are carried out within the entity, seek information thus either on the outside for Have more complete information, confirm that institutions related to the organization that must or have what is said in the accounting they carry, calculate everything to know the true situation of the organization directly.
Internal Control System
It is a system with the objective that all the information, accounting activities of the entity can be safe.
conclusion
Although the audit can be divided or classified in many different ways, they all reach the same purpose which is to know the way things are done and see if these are appropriate, the difference is that some are by their own decisions of the company others of the government, some are carried out by professionals and only in charge of the company, but for all it remains the same purpose, to know how the entity is.
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