A company audit or financial audit is an examination and evaluation of the financial statements of a company. It is to ensure that all the transaction records are accurate as per the claims. This audit can be conducted by in-house employees of an organization or by a certified accountant firm.
All public, private and, various LLPs must get their accounts audited each financial year. Financial statements like income statements, balance sheets, cash flow statements are examined to prevent any misrepresentation of the financial situation of the business.
What are the types of company audits?
There are 3 types of company audits:
Third-party audits, also known as external audits, are conducted when the company hires an independent auditing firm to perform an audit. The external audit verifies that the company has met all the auditing regulations and standards.
Here are some of the benefits of a third-party audit service provider:
Credibility: Accounting is complicated and many businesses do not have a proper understanding of accounting principles. In-house auditors are often held accountable for misrepresenting the company’s financial position to make it appear more successful than it is. Professional accountants can bring accuracy and validate the information. It, in turn, gives the businesses credibility and helps to secure external funding.
Eliminates errors: External audits are a big help to businesses in discovering any errors in the audit prepared by the internal team. Even minute errors are capable of affecting the decision-making process. Therefore, external audits can review financial information and detect errors.
Prevent frauds: It is necessary to weed out any discrepancy well in advance to maintain the company’s image. External auditors with their unbiased views review the financial statements and give their impartial judgment.
Scopes for improvement: External accountants can help businesses identify the processes that need improvement. They can streamline the process and provide information on current accounting issues.
Get the best auditing service
At Careful Counting, we offer the best auditing services. Our financial experts are well-versed in preparing financial statements and audits. Examining and evaluating every detail, we present flawlessness and accuracy in every audit report.
The financial statements explain the operating, investing, and financing activities of a company. However, internally developing these statements is associated with risks and raises questions about its integrity.
That is where certified accounting firms can help companies. In addition to verification of the company’s records, we also ensure that the financial statements of a company are prepared as per the relevant accounting standards.
Highlights of our service:
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