Audit is an inspection, correction and verification of business accounts, usually conducted both internally (by employees of the organisation) and externally (by an independent qualified accountant or firm).
Internal audits, which can take place up to four times a year, focus on identifying the processes and controls surrounding financial reporting, assessing the risks therein, and determining if the existing internal controls mitigate the identified risks.
On the other hand, external audits focus primarily on whether and how well a business’s financial statements, including the income statement, balance sheet and cash flow statement, adhere to generally accepted accounting principles. In theUKand in theUSAexternal audits take place between July and November.
Some of the persons involved in the auditing process are as follows.
