Audits put people on edge.
From financial statements to management accounts and reports, accounting records, operational reports, revenue reports, and expense reports, accounting audits can reveal truths otherwise hidden.
This is why Owners and Executives ought to audit their businesses more often than not, so that nothing goes hidden for too long.
Because if financial, personnel, or process-oriented issues linger, they can fester and implode the business from the inside out.
No Owner or Executive wants to get that email or phone call.
With my in-house CPA, you’ll get that expert advice for every type of Business Audit that you need.
With more than 15 years of experience, I deliver spot-on, accurate reports weekly, monthly, quarterly, or whenever you’d like so you know exactly where your business stands.
This is where Local Business Audit Accounting can help you a ton with your accounts payable system and processes. I’m your local, expert outsourced accounting department who does it all for a third of the cost.
As your Outsourced Accounting Department, I’m going to share the 11 types of audits you can leverage on and inside your business to make sure you’re operating at peak performance.
3 Types of Accounting Audits and Why Your Business Needs Them Now
An audit is a thorough examination of various financial records and reports conducted by experts known as auditors.
They scrutinize financial statements, management and accounting records, operational reports, revenue and expense reports.
Typically, certified public accountants (CPAs) are involved in many types of audits to ensure the records are presented accurately, fairly and meet the required standards.
The objective of an audit is to provide an unbiased assessment of a company’s financial health and uncover any discrepancies or non-compliance.
Here are the 3 types of accounting audits where Certified Financials by our in-house CPA are crucial:
#1. Internal Audits
Internal audits are a means of evaluating a company’s internal controls, processes, legal compliance, and asset protection.
This process can be an essential tool for businesses to assess their level of risk and identify potential opportunities for improvement in performance.
In other words, internal audits provide an objective assessment of a company’s operations, identify areas of vulnerability, and help to establish a roadmap for enhancing efficiency and overall business performance.
#2. External Audits
External audits are typically conducted by a third party.
The primary purpose of these audits is to provide an unbiased assessment of a company’s financial statements, usage of federal funds, or other areas specified by the audit agreement.
Once the audit is complete, a detailed report is distributed to shareholders and external stakeholders outside of the organization. One of the key advantages of external audits is the independence and objectivity of the audit team, which can enhance stakeholders’ confidence in the audit process and report.
By ensuring impartiality and adherence to audit standards, external audits provide assurance to shareholders and stakeholders that a company’s financial statements and operations are reliable and trustworthy.
#3. Financial Statement Audits
During a financial statement audit, independent auditors are engaged to provide a report on whether a company’s financial statements are compliant with the relevant financial reporting standards.
The auditors’ main tasks include identifying and evaluating risks of material misstatement due to fraud or error, gathering adequate audit evidence to determine whether material misstatements exist, and forming an opinion on the financial statements.
According to the American Institute of Certified Public Accountants (AICPA), financial statement audits are usually required when seeking significant levels of financing, outside investment, or during the sale of a business. The audit report can serve as a valuable tool for stakeholders, investors, and other businesses to make informed decisions about the company.
By providing an independent and expert assessment of a company’s financial health, financial statement audits help to instill confidence and promote transparency in financial reporting.
Let my in-house CPA tackle any one of the three today.
How Do I Hire Virtual, Outsourced Bookkeeping & Local Accounting Services?
Hire me, your Local, Master Outsourced Bookkeeper & Expert Virtual Accountant, today.
I bring your books current the very first time. Bringing back months and years!
I deliver accurate, spot-on reports weekly, monthly, quarterly, or whenever you like without fail.
And, I help you forecast your financial future so you can know exactly where your business stands financially.
Don’t let behind books and inaccurate accounting get in the way of growing your business.