AUDITING

Auditing

Why do accounts need to be audited?

The primary objective of the audit is to identify deficiencies or irregularities in some parts of the company and point out its probable remedies. The aim is to help management to achieve more efficient administration. His intention is to examine and evaluate the methods and performance in all areas Evaluation factors includes the economic outlook, the proper use of personnel and equipment and operating systems satisfactory (Albrecht, Pp. 58-61).

In the audit carried out studies to identify gaps because difficulties are current or potential irregularities, traffic, neglect, unnecessary losses, wrong actions, poor collaboration friction between managers and a general lack of knowledge or from what is a good organization. Often happens that losses occur for prolonged periods of time, which, like chronic diseases, will make the situation worse due to the lack of supervision (Alles, Pp. 30-35).

Through the work done by the administrative auditor, it is in a position to identify and expose the flaws and faulty methods operational performance, Regarding the specific needs of the management with regard to planning, and realization of organizational goals.

The auditor's responsibility is to assist and support management in identifying areas that may be carried out valuable economies and implemented best management techniques. Immediately after an investigation defined and issues wherever they arise or circumstances which might remedy or improvement, it is the duty of the auditor to examine with a critical eye and assess any solution that seems appropriate (Alles Pp. 211-212).

The operational efficiency of the function or area under study, can be determined by comparing current conditions with those required by the plans, policies etc.

The main objectives of the audit the following:

Determine the adequacy of the organization of the institution

Verify the existence of objective and consistent and realistic plans

Monitor the existence of appropriate policies and compliance with them

Check the reliability of the information and the controls

Verify the existence of appropriate procedures or methods of operation and efficiency of these

Check the appropriate use of resources.

To justify the need for the audit was a theory of agents. The approach of this theory to the Audit Committee is to consider the range of individuals interested in reliable financial information, and explore their interests and needs. The auditor is an agent acting as a rule, on behalf of shareholders. As managers, owners attract additional external funding (for example, by issuing shares); they gradually lose control over some aspects of the business, especially over financial reporting and continue to attract capital (Avellanet, Pp. 24-28). With increasing external sources of capital increases and the need for a modern and reliable financial information (for example, how adequate income received by owners of the risk they have made investments; whether they should sell, buy or continue to hold its share in the assets of the company; whether the enterprise able to meet their expectations in respect of dividends). Moreover, subsequent holders of shares and creditors tend to receive less than the previous ones, ...