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Accounting Schemes QUestion - what exactly is Auditing about? watch

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    Anyone here done/do auditing as part of a firm or gap year? Is basically just checking things add up? Or is there some consultancy added in too? Like speaking to clients about how to strategize with their finances etc?

    Could someone elucidate what its about? THAAANKS!
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    (Original post by 2strong)
    Anyone here done/do auditing as part of a firm or gap year? Is basically just checking things add up? Or is there some consultancy added in too? Like speaking to clients about how to strategize with their finances etc?

    Could someone elucidate what its about? THAAANKS!
    Auditing involves reporting on the accuracy of a set of financial statements of an organisation, and whether those statements can be considered to give a "true and fair" picture of the organisation's financial position. This doesn't just involve checking additions (though that is a necessary procedure), but also testing that all transactions/balances that should be included are included correctly, and that no transactions/balances are included that should not be.

    Many modern audits focus more upon the systems/processes involved in generating this financial information - if these are verified to be acting correctly, then the amount of "substantive" testing (as described above) needed can often be greatly reduced.

    Though not actually a part of an audit, many/most audits will involve giving recommendations to management on how to improve their business processes, as a "value-added" service.

    This may also help: http://en.wikipedia.org/wiki/Audit
 
 
 
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