1. It helps to detect fraud and errors.
2. It encourages investment.
3. It identifies areas for improvement in the business.
4. It protect public interest against corruption.
Audit Committe enhance communication between Internal Audit, External Audit and CFO. Audit Committe assist directors to avoid litigatio risk.
there are two types of audit, external and internal. Internal audit is necessary in any business enterprise in order to determine adherence to company policies and determine losses due to irrregularities by employees. External audit is likewise mandated for the final presentation of the financial condition and statement of earnings by the company for a certain particular period, either a calendar or fiscal year as mandated also by government regulatory agencies of a country.
3rd Party Audit - Independent Audit 2nd Party Audit- Customer Audit 1st Party Audit- Internal Audit
Under HR Audit, audit of HR procedures and process is done while in financial audit, audit of finance related matters are done.
difference between audit program audit & note book
An advantage to having an external audit is the fact that the audit will not be biased. A disadvantage to external audits is the process. It can be long and invasive.
the audit committee communicate with internal audit, external audit and CFO on behalf of the company.
What is the nature external audit?
Internal audit is conducted by people from within the company. This is also known as first party audit. External audit is conducted by an independent party. Second or third party audits are external audits.
An internal audit is done by the company itself. An external audit is done by auditors not under the influence of the company being audited.
An external audit helps businesses improve their processes. Recommendations made by external auditors are generally unbiased, which will allow managers to take them seriously.
Audit Committe enhance communication between Internal Audit, External Audit and CFO. Audit Committe assist directors to avoid litigatio risk.
An internal audit is when someone within your company checks over your books. An external audit is when someone outside of your company checks your books; like the IRS.
this indicates that the audit will be conducted in accordance with the international auditing standards.
What are advantages of human resources auditing
The internal audit of PwC is carried out by auditors of PwC itself, while an external audit will have to be carried out by external auditors. But external audits are only valid for public listed companies.
1) An internal audit is an appraisal of activities within company areas, whereas an external audit looks at the financial statements as a whole 2) An internal report is normally given to managers, while an external report is prepared for shareholders, related companies, creditors, or government agencies.