Checking of books of accounts so as to find out the truth and fairness.
Verification of assets and liabilities after its detail checking.
Checking of books of accounts on the basis of available evidence.
Checking arithmetical accuracy of books of accounts.
Expressing independent opinion about the financial statements.
Preparing and presenting fair report to the concerned officer or owners.
Detection of fraud, error and non-compliance with laws and regulations.
Assistance with the preparation of financial statements.
External/Internal Audit assignment involves the following steps:
Establish and communicate the scope and objectives for the audit to appropriate management.
Develop an understanding of the business area under review. This includes objectives, measurements, and key transaction types. This involves review of documents and interviews. Flowcharts and narratives may be created if necessary.
Describe the key risks facing the business activities within the scope of the audit.
Identify management practices in the five components of control used to ensure each key risk is properly controlled and monitored.
Report issues and challenges identified and negotiate action plans with management to address the problems.
Follow-up on reported findings at appropriate intervals. Internal audit departments maintain a follow-up database for this purpose.