Audit pro 411

How to Decide Whether Your Business Needs an Audit....? Audits provide the opportunity for a second set of eyes (usually those of a certified professional accountant) looking over your business’s accounts. An annual audit of your business may be a requirement of your business’s investors and lenders as a condition of putting their money in the business. CPA auditors provide a couple of useful services for your business: Checking up:  In a sense, CPA auditors give your business a yearly physical exam. The audit exam may uncover problems that your business wasn’t aware of, and knowing that the auditors come in once a year to take a close look at things keeps your business on its toes. Reporting:  After completing an audit examination, the CPA prepares a short report stating whether the business has prepared its financial report according to the appropriate U.S. or international accounting and reporting standards. The audit requirements are different, depending on whether your business

What is the final audit? T he final audit means when the audit is done after the close of the financial year or when the final accounts are prepared. The audit is completed in one continuous session. Advantages of Final Audit Less danger of manipulation of figures after they have been checked. The auditor need not maintain a big establishment for this purpose. The preparation of the time table for audit for the audit staff is made easy. Wastage of time is avoided in case of the final audit. Tension among the accounting staff is eased out because in the absence of so many visits by the auditor creates the tension in the mind of accounting staff. The money spent by the business firm in the final audit is smaller than other types of audits. The final audit is more beneficial for small business firms. Disadvantages of Final Audit The easy and quick discovery of errors is not possible in the final audit. The accounts are also not presented very quickly. The accounts staff of the client is n