Business and Management
Submitted By tjones86
Evolution of Auditing
It is essential for any business to use physical, mechanical, and electronic controls. Audits are a critical and an important part of every company whether performed internally or externally. The definition of physical control is safeguarding the assets of the business. Mechanical and electronic controls were created to safeguard assets and enhance the accuracy and reliability of the accounting records. Some methods that managiment and auditors can employ to prevent and detect fraud, errors, and illegal acts are: improving knowledge, improving skills, and improving abilities. Just as technology progresses so does society and the need for advancement, with businesses growing, merging, and seeking international expenditures accounting here in the states has started to adjust. With the proper data analysis companies can let their managirs track daily transactions to evaluate how the organization is performing.
Just as technology progresses so does society and the need for advancement, with businesses growing, merging, and seeking international expenditures accounting here in the states has started to adjust. Managirs can base future goals on the data that they receive about present business performance. The process consists of seven phases: planning, risk assessment, audit program, gather evidence, form conclusions, deliver audit opinion, and follow up. Here in the United States most publicly traded companies use GAAP (Generally Accepted Accounting Principals) while the international and other countries use IFRS (International Financial Reporting Standards). Because of the new accounting information systems upgrade, an audit of the accounts payable, accounts receivable, inventory, payroll transactions, and processes.
Improving the knowledge of the audit committee and external audit team in general…...