Audit Services - What is Audit & Assurance?

Auditors have to assess a set of company accounts to find out if they are the right representation of the company's affairs on the accounts date.

The audit provides the comfort or assurance to the users of the accounts that an auditor or an independent third party has carefully examined the accounts and agrees with them.Each and every individual line in a set of published accounts needs to be tested. Auditors actually do not test every transaction that notches up that figure. They prefer to perform two kinds of testing: these are

Substantive Testing and Control testing

Substantive Testing

When it comes to substantive testing, an auditor is supposed to select a sample of transactions that come up with a certain figure. For example, if we are testing the sales figure, you may select a number of sales and may want to see the evidence of these sales. This may include copies of cheques from customers, the purchase orders from customers or the may lead to correspondence or contracts with customers. Auditors will get to test it till they feel they are comfortable that the sales figure is correct.

Controls Testing

A control testing is one process which helps a company to reduce the risk of error or fraud. Each payment is each payment requires two signatories, one person fills in the cheque and the other person signs it.In companies with good controls exist, auditors can test the control rather than a sample of transactions.There are some common misconceptions about misunderstandings about auditors, they are as follows

Auditors in Chennai or anywhere else in India do not do the following things,They do not look for fraud, although they watch out for it.They do not check every transaction - just the 'material' ones.

An audit report is provided with every published account and the auditors also express their opinion on the accounts and bring to notice any issues they had with their audit. Auditors actually do not work for the client company, they rather work on behalf of the company's shareholders. The shareholders then decide the next auditor of the company.

Internal & External Audit

A company will also hire internal auditors to audit itself. This helps them to maintain a high standard of control right inside the organization and also helps reduce the load of work which needs to be sorted by the external auditors.

An external auditor, say an auditor firm in Chennai and other cities of the country,  on the other hand, is another independent firm that comes in and lessens the workload and carries out the audit work on behalf of the shareholders and the company, in other ,words,  helps them with chartered accountant services

These are some of the auditing services which can help you get rid of your financial woes and help you get all your financial problems in order with internal auditing as well as external auditing. If you are finding it tough to grapple with the existing financial situation of your company, consider getting help from a renowned audit firm in your city for best results.