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Auditing Assignment Help05/20/2021

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The students who are doing post-graduation in accounting and finance have to do assignments in auditing. Auditing assignment is one of the toughest to make. Auditing means investigation and confirmation of records of accounting. It is a broad theme as it includes all the subjects. For example, Accounting, Corporate Law, Finance, Costing Accounting as well as Managerial Accounting.

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Table of Contents

What is Auditing and it’s different types

Auditing is the process of verifying or checking various books of accounts by an auditor followed by an examination of inventory to make sure that all departments are following a documented system of recording transactions. It is done to confirm the accuracy of financial statements provided by the organisation. Auditing plays a key role in ensuring a company’s accounts are accurate and finances are being distributed in the fairest or most efficient manner. Auditors come from the outside of the organisation to check and verify all the accounts and transactions.

There are three main types of audits.

  • External Audits
  • Internal Audits

IRS (Internal Revenue Service) Audits

External Audits:

These audits are performed by outside parties. These types of Audits are very helpful in removing any bias in reviewing the state of a company's financials. Financial audits seek to identify if there are any material misstatements in the financial statements.

External auditors follow a set of standards different from that of the company or organization hiring them to do the work. The biggest difference between an internal and external audit is the concept of independence of the external auditor. When audits are performed by third parties, the resulting auditor's opinion expressed on items being audited (a company's financials, internal controls, or a system) can be candid and honest without it affecting daily work relationships within the company.

Internal Audits:

Internal auditors are employed by the company or organization for whom they are performing an audit, and the resulting audit report is given directly to management and the board of directors. Consultant auditors, while not employed internally, use the standards of the company they are auditing as opposed to a separate set of standards. These types of auditors are used when an organization doesn’t have the in-house resources to audit certain parts of their own operations.

The results of the internal audits are used to make managerial changes and improvements to internal controls. The purpose of an internal audit is to ensure compliance with laws and regulations and to help maintain accurate and timely financial reporting and data collection.

Internal Revenue Service(IRS) Audits:

The IRS also routinely performs audits to verify the accuracy of a taxpayer’s return and specific transactions. When the IRS audits a person or company, it usually carries a negative connotation and is seen as evidence of some type of wrongdoing by the taxpayer. However, being selected for an audit is not necessarily indicative of any wrongdoing.

Auditor’s Roles & Responsibilities

An auditor is an authorised personnel that reviews and verifies the accuracy of financial records and ensures that companies comply with tax norms. Their primary objective is to protect businesses from fraud, highlight any discrepancies in accounting methods, among other things.

The main responsibilities of an auditor is to ensure compliance with established internal control procedures by examining records, reports, operating practices, and documentation. Verifies assets and liabilities by comparing items to documentation. Completes audit workpapers by documenting audit tests and findings.

Types of Opinion in Auditing

The impression of the financial statements of an association is the basis of the opinions exhibited by an auditor in the review report. In auditing, the auditor considers voicing an opinion based on the inductions and conclusions drawn from the examination of the book of records of an association. Opinions hold vital significance to the partners of an association. There are four kinds of opinions that an auditor can create:

  • Unqualified Opinion :
  • An unqualified opinion named as a clean opinion. It implies that financial statement and book of records are free of blunders and fakes. It features that the association analyzed has acknowledged standard accounting arrangements and methods. “Clean Opinion” is the term used for an unqualified opinion.

  • Qualified Opinion
  • A qualified opinion alludes to the way that an association has been unsuccessful in adjusting the Accepted Accounting Principles (GAAP) and standard accounting systems. In any case, no twisting or distortion of reality is available in the books of records.

  • Adverse Opinion
  • An opposing opinion is the biggest issue looked by an association. The auditor proposes an opposite opinion when the association has neglected to adjust and see to the standards and gauges of GAAP.

  • Disclaimer Of Opinion
  • Auditor gives a disclaimer of opinion when they can’t express an opinion. It can be because of some unanticipated possibilities. Possibilities could be limited access, not being allowed to perform some aspects of audit and so on.

    Auditing Help

    Topics covered in Our Auditing Assignment Help

    Our experts are capable of writing any assignment related to Auditing in a proper organised way, but here are some different types of Audits which we covered in our Assignments.

    • Forensic Audit
    • Statutory Audit
    • Financial Audit
    • Tax Audit
    • Information Technology Audit
    • Compliance Audit
    • Value for money Audit
    • Review Financial Statements
    • Agreed Upon Procedures
    • Integrated Audit
    • Special Audit
    • Operational Audit

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    Auditing refers to financial statement audits or an objective examination and evaluation of a company’s financial statements – usually performed by an external third party.. Chat with our Auditing Assignment Experts to learn more about the auditing homework help. Our experts are available 24/7 for your help.

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