Audit, Auditor and Types of Audit

Audit, Auditor and Types of Audit

An audit is unbiased inspection and assessment of the monetary statements of a company to check that the monetary records are a good and exact representation of the activities they declare to represent. The word audit specifies to a financial plan.

The audit can be done by the employees of the company or somebody from outside the company.

Definition of an Auditor

An auditor is a person who is approved to analyze and evaluate the preciseness of economic records and to make sure that the companies go in accordance with the tax laws. Auditors assure that the business is not involved in any fraud, identifies inconsistency in accounting techniques and work from time to time on advisor basis helping firms to identify ways to spice up working efficiency.

What are the types of audit?

There are many types of audits which can be organized. We will the most common two types of audit in this article.

Internal Audit

An internal audit is a section which is built inside a company that is asked to give fair, unprejudiced and neutral reviews of businesses and processes. The reason why internal audit is done is to make sure that the companies are following the rules and regulations and that the collection of data and financial outline is done in an exact manner and in time. The benefit of internal audit is that if there is any error, it can be corrected before the conduction of external audit.

The internal audit is performed by an internal auditor which is usually an employee within the company. The internal audit is narrated to either the Board of Directors or representative of the administration. This type of audit is related to internal authorities, operation improvement, administration and management of risks.

External Audit

An external audit is performed by someone who is not the employee of the company. It is usually performed by outside companies. The reviews of the external audit are sincere and it does not affect the relationship between the employees of a company.

The external audit is performed by external auditor who is an employee of external company. The external audit is described to either the investors or the associates from the external company. This type of audit is related to business reports and internal authorities.

If you want external audit to be done in your Dubai office, there are some reliable audit companies in Dubai which you could opt. There are also some amazing accounting and bookkeeping services in Dubai which you could go for recording all of your transactions.

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