A auditing
is an important term used in accounting practices to examine and verify a company's financial records to ensure that financial information is represented fairly and accurately.
Financial statements capture a company's operating, investing and financing activities through various recorded transactions, and are prepared internally by the company's management using relevant accounting standards such as International Financial Reporting Standards (IFRS) or Generally Accepted Accounting Principles. (GAAP), which were developed to provide useful information to users, such as shareholders, creditors, customers, suppliers, partners and government entities. To ensure that financial statements are prepared in accordance with relevant accounting standards, a auditing is realized.
As the financial statements are developed in-house, there is a high risk of fraudulent behavior on the part of their preparers. Without proper regulations and standards, they can easily rig the financial position to make the company appear more profitable or successful than it actually is. THE auditing, in this case, is crucial to ensure that companies represent their financial position fairly and accurately and in accordance with accounting standards.
There are three main types of auditing:
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A auditing
external audit, which is performed by third parties, who provide an unbiased opinion that internal auditors may not be able to provide. THE auditing External financial reporting is used to determine any material misstatements or errors in a company's financial statements. THE auditing External auditing is important to enable multiple stakeholders to confidently make decisions regarding the company being audited.
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A auditing
internal, which is carried out by the employees of a company and is not distributed outside the organization, but used for the use of management and other interested parties. THE auditing
Internal control is used to improve decision making, providing managers with actionable items to improve internal controls, ensuring compliance with laws and regulations, and maintaining reports. fair and accurate financials.
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A auditing governmental, which aims to evaluate public management, through management processes and results, and the application of resources by public and private entities, by comparing a situation encountered with a certain technical, operational or legal criterion. THE auditing government is within the framework of the Brazilian Accounting Standards and is at the service of transparency, trust and Brazilian external control.
Get in touch with TATICCA – ALLINIAL GLOBAL, which operates throughout Brazil and globally, with integrated auditing, accounting, tax, corporate finance, technology, risk advisory, business consulting and training. PFor more information, visit www.taticca.com.br or e-mail taticca@taticca.com.br and learn more. Our company has professionals with extensive experience in the market and has certified methodologies for carrying out activities.
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