Procedural Audit

Evaluation of internal controls, accounting policies, and other procedures of a business entity by an independent CPA. Recommendations for improvement in procedures or activities in the system are made. An overall appraisal may be made of the entire business, or the audit may be directed to a particular business segment. At the conclusion of the audit, management receives a report that will list the findings. These audits are normally performed by the internal audit staff in many companies and take place during the entire year. Where a company does not have an internal audit staff, it may hire the auditor that certifies its financial statements to perform a procedural review as part of the annual audit. When such an arrangement is made, management expects to receive a separate report on this review, offering its findings with recommendations.