Auditing Is an Activity

Auditing is an activity, which provides the risk management, governance and control to an organization. The Audit’s main purpose is to check the reliability of information, to ensure the compliance of the organization’s policies and regulations, to protect the assets of the organization, make it sure that the organization use its resources efficiently and establish operational goals and objectives for the organization.

It is the duty of an accountant to manage the numbers in a way that they will become according to the commonly understood and accepted rules. The duty of an auditor, is to make it sure that the numbers must be calculated using the commonly understood and accepted rules and they are portraying the business honestly.

There are three main types of audits and are listed below:

• Financial Audits: It is the analysis of economic activity of an organization as measured by its financial statements.

• Compliance Audits: Compliance Audits review both, the financial Statements and the operating control of an organization. With the help of compliance audit, it can easily be found that whether an organization is in complete compliance with the laws, regulations, rules and policies established by it.

• Operational Audits: The purpose of operational audit is to ensure that the management of the organization is meeting the goals, set by the organization, at minimal cost.

As you can see there are many differences in each of these audits. Depending on what is being audited is what type will be used.

Professional organizations for accountants. The first is the AICPA which means The American Institute of Certified Public Accountants and is the premier professional organization for certified public accountants in the United State. This organization strives to provide its membership with the resources, information, and leadership that enable them to serve the public and clients in a professional manner. Members of the AICPA must have a valid license to...