Key stages of standard auditing process
Auditing or audit accounting is a prime method for ensuring a company’s finances are being used efficiently and compliant to the rules laid by the organization. Auditors or audit accountants are individuals who ensure the functioning of this procedure is in tandem with the audit policies. The accountants are responsible for reviewing financial records. As part of their duty, the auditors analyze the working of the financial reporting practice followed by the organization and the tools used to carry out the financial transactions. The audit accounting can be either an internal or an external process. However, the stages considered while following this procedure is standard. The following are the standard stages of auditing practices.
Stage 1: Reviewing
An audit accountant or the auditor’s role in evaluating the operating environment of an organization. This review gives the auditor a lookout on the factors, that can be either internal or external, long or short-term, that is responsible for affecting the business operations. As part of the audit, the auditing accountant ensures that the organizational activities are designed as per the legal guidelines and are complying with the regulatory rules levied by the Government. While auditing the organization, the external factors that have to be considered are if the business is understanding and obeying the government directives, industry trends, business practices, and economic sector outlook.
Stage 2: Testing
As part of the auditing process, the second stage is testing. Here the auditors have to review for the organization’s policies, procedures, and internal control. These individuals also have to regulate the human resource guidelines, gauge the operating performance of the organization, and detect the risk trends. The auditor’s operational knowledge and experience come in handy here, as they have to evaluate the efficiency and control designs of the firm. Spectrum accounts, one of the top auditing and accounting firms in Dubai with Qualified accountants and auditors who can easily detect the deficiencies of the firm and advise corrective measures preventing any falters in the accounting processes.
Stage 3: Detailing
Auditor’s job is to look into the detailing of each financial transaction of the organization. They have to be observant about the balances and accounts. The auditing accountant as part of their role should keep a tab on the rise or fall of the operation procedures and controls. Have to record the financial statements, especially when they are mistakes. Book keeping should be part of the auditor’s job wherein there is detailed information about the organization’s financial transactions.
Stage 4: Analyzing
The fourth stage of the auditing process consists of analyzing. Here the auditor analyzes the data gathered until this stage. They try to determine the correlation between balance and financial statements, present and past data, evaluate the key operating trends, and assess the accuracy of the financial reporting. The auditing accountant ensures the entire information is recorded and reported in a legible manner and makes sure that the reports are prepared in line with the accounting principles.
Stage 5: Assessing
Assessing is the last step or last stage of the auditing process. After the financial reports are generated, the auditors will be able to evaluate the results of the reports and conclude if the organization is at a risk or not. As the auditor is well versed with the accounting and financial procedures, he or she will be able to assess if the firm’s risk profile can be tagged as low or medium or high.
Understanding local regulations and sectoral understanding plays an important role in the ability of the service provider to offer suitable solutions on case-case basis. Spectrum Accounting is a specialized firm based in Dubai, offering varied and professional services in accounting and auditing, in addition to various value-added services in related areas. The qualified professionals at Spectrum are adept with the accounting and auditing principles and abreast with the latest changes amended. At Spectrum accounts, we ensure that not only your data is secured but also the finances grow multifold.
We, spectrum auditing and accounting , one of the leading auditing firm in UAE, follows these standard auditing process.
Check our auditing services from below link:
contact us