A simple definition of "Accounting"
Accounting is how your business records, organizes, and understands its financial information.
You can think of accounting as a big machine that you put raw financial information into-records of all your business transactions, taxes, projections, etc. that then spits out an easy to understand story about the financial state of your business.
Accounting tells you whether or not you're making a profit, what your cash flow is, what the current value of your company’s assets and liabilities is, and which parts of your business are actually making money.
Definition of Financial Audit:
A financial audit is an independent, objective evaluation of an organization's financial reports and financial reporting processes. The primary purpose for financial audits is to give regulators, investors, directors and managers reasonable assurance that financial statements are accurate and complete.
A financial audit, or more accurately, an audit of financial statements, is the review of the financial statements of a company or any other legal entity (including governments), resulting in the publication of an independent opinion on whether those financial statements are relevant, accurate, complete, and fairly presented. Financial audits are typically performed by firms of practicing accountants due to the specialist financial reporting knowledge they require. The financial audit is one of many assurance or attestation functions provided by accounting and auditing firms, whereby the firm provides an independent opinion on published information. Many organisations separately employ or hire internal auditors, who do not attest to financial reports but focus mainly on the internal controls of the organization. External auditors may choose to place limited reliance on the work of internal auditors.
Our professional accountants offer auditing services, thereby, assisting organizations in their operational and financial reporting
What are Audits:
Organization present various reports to third party users, who make major investment and other decisions based on what these reports convey. Auditors conduct a study of all the reports presented by the organization to third part users. The audit needs to be absolutely thorough and objective. Specially Internal auditing services and financial auditing service.
The audits that we conduct include:
6 Essential Features of an Audit:
Auditing is a systematic and scientific process that follows a sequence of activities, which are logical, structured, and organized.
The audit process involves three parties, that is, shareholders, managers, and auditors.
Auditors give assurance on a specific subject matter. However, the subject matter may differ considerably, such as - data, systems or processes and behavior.
The auditing process requires collecting the evidence, that is, financial and non-financial data, and examining thereof.
The evidence must be evaluated regarding established criteria, which include International Accounting Standards, International Financial Reporting Standards, Generally Accepted Accounting Principles, industry practices, etc.
The auditor has to express an opinion as to the reasonable assurance on the financial statements of the entity.