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What is the difference between accounting and auditing?
Besides, Accounting is concerned with balancing the accounts whereas auditing is concerned with the establishment of credibility of financial statements. Accounting is to clearly state the trading results whereas auditing is to ensure the correctness of financial statements.
What are the objectives of an audit report?
The objectives of auditing is enable the auditors to express their opinion in the audit report after evaluate the financial or non-financial information about the company. They will give those opinion by accumulate and reviewing the related evidence.
When does an internal auditor carry out an audit?
For example, when a financial statement is being audit, the auditor should carry out the audit process according to generally accepted accounting principles (GAAP). However, for auditing the more subjective information like audit the efficiency on manufacturing operation, there are no or less standards is established to be follow.
Why is it important to have an external auditor?
Audit is important to help the users of financial statement in reviewing the financial statement and make decision with those information. This is because, the users of the financial statement may not have enough capabilities and knowledge to review and evaluate each account in the financial statement.
Last Update: Oct 2021
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