Auditing is the process of scrutinising and verifying the accounting records, vouchers and the financial statements which helps in evaluating and judging the accuracy of the accounting records and the financial statements. Auditing is defined as a concept which depends on different accounting statements and the concepts which help in understanding and evaluating whether these financial statements provide real and authentic information about the accounting records of the entity. In the auditing assignment the concepts and meaning of auditing are explained which helps the students in understanding the meaning of auditing. Auditing is the process of examining and checking the inventory records of the organisation in order to ensure that the different departments are maintaining the documented records in relation to the transactions of the organisations.
Need of Auditing
Auditing is the process of analysing and judging the income statement, profit and loss account and evaluating the balance sheet to ascertain the profit and loss earned by the organisation in the financial year and to know the financial position of the organisation. The main aim of auditing involves examining and evaluating the reality and the assessing the accuracy of the ideas represented by the accountants of the organisation. In the auditing assignment the variety of needs of the accountants are clearly explained.
Auditing has great significance in the areas of finance and the accounting. The value of auditing has increased in the organisation and the students also desire to become an auditor. Due to this reason the need of the auditing assignment is increasing. In these assignments the different concepts which include the audit evidence, audit tests, audit scopes are explained. The assignments are prepared in order to make the students understand auditing procedures so that the students can apply those concepts in the real world. While preparing the assignments it was ensured that the assignment is prepared as per the interests of the students. There are some students interested in audit evidence while some are interested in auditing reports so the auditing assignment is prepared according to the interest of the students and there are different chapters prepared for students to understand the different auditing concepts appropriately.
External audit is also referred as financial audit in which there is evaluation and judgement of the authenticity of the financial statements of a business organization that is not dependent on the organisation which involves framing regulatory statements on the IFRS. While conducting the auditing process the external auditors must ensure that auditing standards and the guidelines stated in International Standards on Auditing are followed by the external auditors in order to maintain the trust of the shareholders and the stakeholders.
Internal audit means operational auditing which is taken by an organization in order to achieve the significant objectives of the organisation. Internal audit is usually undertaken by the employees of the organisation who report to auditing committee of the organisation. Internal auditing is generally undertaken to monitor the internal control effectiveness. Internal control is usually done to investigate the fraud and theft in the organisation. Internal audit usually helps in evaluating the procedures of the company. Internal audit helps in analysing the efficiency in the operating activity in the organisation.
Forensic auditing is the process of using auditing skills which has some form of legal association. Forensic audit is generally used to provide opinions about the matters related to finances. Forensic audit is generally used to investigate the fraud which involves money laundering. Forensic audit helps in determining the profit share among the partners when there is dispute between them. Forensic auditing helps in analysing and determining the errors in the accounting and the financial statements of the organisation.
Tax audit is generally conducted to examine the tax returns accuracy which is filed by an organisation or an entity in a financial year which helps in determination and assessment of any form of tax liabilities. According to the laws of taxation the companies of different size need to have tax audits after some point of time while there are situations in which the companies are usually selected for taxation audits randomly.
Information system audit
Information system auditing is process which involves analysing and examining the controls related to Information Technology in the business organisation. Information system audit can be conducted at the time in which internal or external audit is done. In the Information system audit there is need of evaluation of different aspects related to the information technology which involves security and privacy of the information system. The audit involves developing of the standards of the system. The information system auditing involves designing the controls of the system.
Apart from these there are other different types of audits which involve the environmental and social audits. The auditing also involves the compliance audit, value for money audit and the public sector audit. In the auditing assignment the different types of audit are explained in order to make the students aware about the different types of audit requirement in an organisation. The assignment is prepared so that the student can choose a topic based on their interest for the project.
The first step of auditing process involves obtaining and estimating the accounting records and financial statements of an organisation. This involves scrutinising of the internal control and investigating the accounts in the organisation.
The second step of auditing process involves organizing and connecting the determined and analysed basis. In this process there is need have assessing a connection between determination of the financial statements and the analysing the suggestions of the accounting structure.
The third step of auditing process involves communicating the outcomes of the organisation to the shareholders and the stakeholders. The outcomes received after conducting the audit process is sent of the stakeholders and the shareholders of the entity.
In the auditing assignment the distinct process of conducting an audit in an organisation is explained precisely. This precise representation of the auditing process in the organisation helps the students to understand the concepts which help them in the examination.
Role of an auditor and parties involved
The main role of an auditor involves careful examining the accounting records of a business organisation as per the accounting and the auditing standards which is followed by the organization. The auditor needs to conduct the auditing in a fair way. They need to present whether the accounting records are authentic or not. The auditor needs to assess the balance and the cash flow statement of the organisation in order to determine the financial position of the organisation and to analyse the need of cash in an organisation by determined whether there is inflow of cash in the organisation or outflow. The auditor then prepares an audit report in which the auditor suggests the and expresses different opinions. The auditor needs to mention the application of auditing standards in the auditor report.
In the auditor report the auditor suggests the different methods and guidelines through the organisation can improves its situation. The auditor states the different procedures through which the organisation can remove the cause which are causing outflow of cash and can apply new procedures in order to ensure cash inflow in the organisation. The auditor determines whether there is any sort of fraud in the financial statements of the organisation. In auditing assignment the role of auditor is explained in order to make the students understand the different auditing standards.
Types of opinion
There are different types of opinion given by the auditor while preparing the auditor report based on the financial statements of the business organisation. While conducting the process of auditing the auditor needs to give an opinion on the basis of the different outcomes which comes after analysing the accounting records of the organisation. In the auditing assignment the different opinions given by the auditor is appropriately explained. Opinions provide great importance to the stakeholders and the shareholders of the organisation. There are around four types of opinions which include the:
A qualified opinion refers to the opinion in which the company usually do not follow the guidelines stated in the Auditing standards Board and in the Generally Accepted Accounting Principles. While there is no false representation done in the accounting records of the organisation.
An unqualified opinion is referred as a clean opinion. It refers to the opinion in which the company usually follows the guidelines stated in the Auditing standards Board and in the Generally Accepted Accounting Principles. An unqualified opinion states that the accounting records and the financial statements and accounts do not have any sort of errors.
Disclaimer of opinions
Disclaimer of opinion refers to that opinion in which an auditor cannot provide an opinion related to the issue because there are different unknown circumstances. This issue usually arise because there is lack of relevant data and accounting records and the documents which is important in order to provide an authentic opinion to remove the issue.
One of the critical problems of the organisation is an adverse opinion. An auditor usually prepares an adverse opinion because the business organisation has not been able follow the guidelines and principles related to the Generally Accepted Accounting Principles. The opinion given by the auditor explains the irrelevant information presented in the accounting records of the organisation.
Basic concepts of Audit
An auditor is a person who is responsible for conducting an audit of an entity or organisation and to provide relevant and authentic information to the stakeholders and shareholders through audit report.
Auditing is the process of examining the financial information of an entity or business organisation in order to provide authentic information through unbiased opinions. Auditing is conducted to judge the reality of the financial statements of the business organisation.
Accounting principles refers to those standards which provide regulations which are necessary to prepare the accounting statements by the business organisations. These organisations usually follow different regulations in order to ensure that the accounting statements are prepared as per the standards and there is authentic information provided by these accounting statements.
Internal control refers to the process in which there is control of the management on the basis of the accounting principles and standards. The principles are usually followed in order to ensure that there the operations on the basis of these auditing principles.
An auditor is considered a watchdog and not a bloodhound- He/she is responsible to control the issues and errors in the organisation. They have no responsibility in relation to the internal control of the organisation. An auditor is responsible to judge and determine whether the financial statements and accounts are authentic in nature and based on this judgement the auditor prepared the audit report. They can provide solutions to the business organisation which helps will helps them solving the errors of the organisation.
Auditing Assignment needs
The main objective of preparing an auditing assignment is to ensure that the students understand the different auditing concepts. This assignment is a great source of information for those students who are studying auditing as a profession. The assignment provides information to the students in all over the world. In assignment different difficult concepts are explained in a precise form to make the students understand the concepts easily. The assignments helps the students prepare a good project in order to gain best grades in the examination. The auditing assignment provides information to the professors and it makes the task easy for the professors because the professor can refer these assignments to the students and thus helps them explain the concepts in an easy way.
Professional assignment assistance providers like DMG Solution process audit assignments by experienced assignment writers, who have the practical experience of auditing. These writers have explained the different auditing concept with a practical approach. This makes the students prepare for the practical scenario and helps the students in the long run. The subject of auditing is taught in different universities and in different fields. The assignments prepared make the student aware about the need of auditing in different fields like marketing, accounting and management.
There are various assignments available online that do not provide authentic information about the auditing concepts but these assignments are prepared taking into account the relevant sources, references which proves the authenticity of these assignments. The assignment provides information about the need of auditing reports in the organisation. The auditing assignment provides information about the need of the auditing standards in the organisation and issues which can be solved from these auditing standards in an organisation.