AUDIT

AUDIT

Need for accounts to be audited

AUDIT

The Audit is a management function aimed at analyzing and assessing, with winged view any corrective actions, internal control organizations to ensure the integrity of its assets, the accuracy of their information and maintain the effectiveness of their systems management.

Other possible definitions include:

It is a comprehensive examination of the structure of a company regarding the plans and objectives, methods and controls, their method of operation and their human and physical.

Classification of Audit

The kind that can divide the audit depends essentially on the business need to establish controls and guidelines in carrying out the activities that take place in the area of the organization.

Administrative or operational auditing is responsible for analyzing the systems, procedures, structures, human resources, materials and programs of the different complexes of organization is, all functions that integrate the management of financial exception to verify proper operation, suggest improvements and improve their dysfunctional behaviors. (Hollingsworth,1999)

The above shows that the audit can be classified as the focus of your application, in the same way we can say that it is divided according to their objectives, financial or operational, or according to some authors at: external, internal or government.

Theoretical Basis of the Auditor

The foundation of the modern audit is argued in a series of ideas that determine the fundamental basis of their application. These arguments are:

- The audit function is based on the assumption that information can be verified.

- There is necessarily a long-standing conflict between auditors and managers of the organizations audited, but if there is a potential conflict in the short term.

or managers may require high profits and other measures favorable to meet the compensation system in which they operate.

o The audit examines and evaluates the claims made by administrators. There may be an attempt to "hide" statements that could be embarrassing for administrators.

"Some Effective internal controls reduce the likelihood of fraud committed irregularities in an organization.

"Unless evidence to the contrary, what was true in the past will happen in the future. (Power,1997)

Why Audit?

Some of the most important reasons to perform an audit can be as follows,

External reasons

a) Changes in the legislative framework.

The release or change the environment legislation, making it less predictable, since it replaces a well-defined position by laws governing the other governed by the forces of competition.

The privatization of organizations change the orientation of them, forcing them to evolve from a bureaucratic model to a ...