The meaning of auditing defined by dictionary.com as 'An official examination and verification of accounts and records, especially finance'.
This finance audit is usually carried out for different institutions at the end of the fiscal year and it is law that there is an audit carried out. It is done to ensure that the company has conducted it's finances for the year in a way that complies with the law and is also correct so that any mistakes do not result in the company paying too much or too little tax.
It is essential that the audit is carried out by an independent party and that the audit is in no way bias towards the company and the records that they keep.
A few of the main things that an auditor looks out for when looking into the accounts of a company and checks that they are all above the law are;
This finance audit is usually carried out for different institutions at the end of the fiscal year and it is law that there is an audit carried out. It is done to ensure that the company has conducted it's finances for the year in a way that complies with the law and is also correct so that any mistakes do not result in the company paying too much or too little tax.
It is essential that the audit is carried out by an independent party and that the audit is in no way bias towards the company and the records that they keep.
A few of the main things that an auditor looks out for when looking into the accounts of a company and checks that they are all above the law are;
- Incoming money
- Outgoing money
- Wages
- Expenses