20 Dec High Quality Audit and How it Delivers Key Business Insight?
An audit is the examination of the financial report or other component of an organization independent an independent individual or organization who issues an audit opinion about the findings. The financial report includes a balance sheet, an income statement, a statement of changes in equity, a cash flow statement, and notes comprising a summary of significant accounting policies and other explanatory notes.
The purpose of an audit is to form a view on whether the information presented in the financial report, taken as a whole, reflects the financial position of the organization at a given date.
As business complexity increases companies are demanding more complicated services relating to audit such as:
Information Technology (IT) audit: which involves confirmation by an independent organization about the health of the IT systems in a company. This involves Computerized Audit Techniques or CATS which will review step by step the black box nature of the IT systems;
Internal Audit: Internal auditing is an independent, objective assurance and consulting activity designed to add value to and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.
Financial Audit: A financial audit is an independent, objective evaluation of an organization’s financial reports and financial reporting processes. The primary purpose for financial audits is to give regulators, investors, directors, and managers reasonable assurance that financial statements are accurate and complete. During the Financial Audit the auditor will review compliance with International Financial Reporting Standards (IFRS) and other requirements.
Financial Audit is not just a compliance requirement, rather it helps businesses to make decisions, that generate positive results for the organization. The purpose of the audit is to validate the confidence for the users of the financial statements. The core mandate of audit is to ascertain that the financial statements give a true and fair view in all material aspects.
The greatest challenge for stakeholders is to understand the importance of quality of audit itself. Quality means a total commitment to making sound judgments. Audits that are high quality, provides confidence and increase reliability on the reported financial statements. High-quality audit depends on factors like development of the daily business environment, financial reporting standards, auditing standards, regulations, and technology.
Whether it is financial, Information Technology (IT) or operational Audit, Averyx has been helping companies both in the UAE and internationally in achieving optimal compliance and benchmarking against best practices globally. Call us today for obligation free quote.