Types of Audit That An Audit Assistant Must Be Aware Of

manoj May 19, 2022 | 152 Views
  • Financial Services

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What is an audit?

An audit in simpler terms is an official inspection of an organization’s financial statements and accounts, preferably by an independent body. It can either be performed by an internal party or by a government entity such as Internal Revenue Service (IRS).

 

What is the importance of an audit?

An audit is done to ensure a fair and accurate representation of the company’s financial information. It overlooks three primary financial statements of a company viz. 

  • Income statement
  • Balance sheet
  • Cash flow statement 

Auditing is crucial to guarantee the compliance of companies with the rules and laws. Without any watch guard, the preparers of the company’s financial statements can mislead by showcasing themselves as more successful through an apparent hike in profits. That is why these companies must have a watch guard. These watch guards can periodically and regulatorily keep an eye on such organizational operations. 

 

What are the responsibilities of an audit assistant? 

It is the responsibility of an audit assistant in Bangalore to monitor and investigate the financial reports of any business. These audit assistants prepare and evaluate the account statements and ensure compliance with the rules and regulations. 

To discuss in detail, the following are the JD for an audit assistant job in Bangalore:

  1. An audit assistant must check the accuracy of financial reports and operations.
  2. He must amend the accounting systems and controls if required.
  3. He should also review and evaluate the whole financial unit of the business.
  4. An audit assistant must be well aware of how to reconcile bank deposits and payments
  5. He should have a basic understanding of how to scrutinize software and hardware systems for any faults. 
  6. He should ensure compliance with regulatory guidelines.
  7. After the proper completion of the audit, he must follow up the audit process with generally accepted auditing standards. 
  8. He should also check any discrepancies in on-book data and computer data. He has to revise it if required. 

 

What are the different types of audits?

There are certain types of audits that an audit assistant job holder must be aware of. These are the audits that generally any business organization, big or small, follow suiting to their need of the hour. 

1.  Internal Audit – This audit is an in-house audit. It takes place within the precincts of your business. The top management summons the audit and someone from the organization conducts it legally.

 

2.  External audit – This type of auditing is done by a third party who is not a part of your business. It is either an accountant, IRS or someone from a tax agency. 

 

3.  IRS tax audit – This audit is used to evaluate the efficacy of the company’s filed tax returns. Any discrepancy is investigated in the business’s tax liabilities to ensure the correct tax payment. 

 

4.  Financial audit – This audit is used to analyze the fairness and precision of a business’s financial statements. These audits are normally external and review transactions, procedures and balances.

 

5.  Operational audit – This audit evaluates the company’s goals, planning processes, procedures and operation outcomes. These are normally internal audits. This audit works on improvising the business operations. 

 

6.  Compliance unit – This audit checks the compliance with internal and external standards concerning business policies and procedures. They check whether the company complies with standardized payment of workers’ compensation or shareholder distribution. 

 

7.  Information system audit – This audit mostly impacts the IT sector and aids in detecting issues pertaining to software development, data processing and computer systems. They prevent any possible data breaching or leakage and regularly conduct mini cybersecurity audits. 

 

8.  Payroll audit – This audit overlooks payroll matters that include wages, tax withholdings, pay rates, and employee data. These are internally done audits. Regular conduction of this audit negates the possibility of future external audits.  

 

9.  Pay audit – Pay audit tries to establish fairness and justice among the employees in terms of their payment. It ensures no disparities are done based on race, religion, age or gender. 

 

Summing up…

The audit assistant job in Bangalore demands an individual to be technical and have a tight grip on financial literacy.  The importance of audit assistant jobs is that they fulfil the requirements of organizations in terms of ensuring compliance and sticking up to fairways of working in society. An audit helps an organization to stay organized, catch errors and ameliorate the decision-making processes.  

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Raj Shah May 19th, 2022
Thanks for sharing with us.
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