Importance of Auditing
A financial auditing is a process of examining an organization’s financial records to determine if they are accurate and in accordance with any applicable rules, regulation, and laws. There two types of audits: External and internal audits. External auditors come in from outside the organization to examine the accounting and financial records and provide an independent opinion on these records. There is a law requires that all public companies have their financial statements externally audited. Internal auditors work for the organization as internal employees to examine records and help to improve the internal processes such as operations, internal controls, risk management and governance. Importance of an Audit Systems to companies Auditing means evaluating the effectiveness of a company’s business objectives, obtaining reliable financial reporting on its operations, minimizing its cost of capital. An effective audit system is important for every compa