The process of inspecting an organization’s or an individual’s financial record and determine if they are adhering to the set rules and regulations of accounting is called Audit. The financial reports that consist of balance sheets, income statements, cash flow statements, and other organization’s fiscal details are examined during the auditing process.
A great sense of responsibility and finesse is required while preparing the audit. Spectrum accounts are in the field of accounting and auditing for many years, and over our cruise in this sector, we could compile some tips to complete this auditing process.
- Planning ahead
As auditing happens on a scheduled time during the year, it is always smart to keep the calendar free for those days, and accordingly structure the process. Auditing requires a few days or months prior and later to analyze if all the requisite fieldwork is done effectively. It is a good move to plan properly leaving lesser chances for confusion or a tense situation. Although auditing of finance records happen once in a year, it is always better to keep a track of things like a daily task, this organizing of the required documents and files will be helpful at the last moment. If there is auditing to be conducted by a third-party source, then it is always better to keep an open communication across the year rather than the nth moment. This rapport is beneficial for the organization, as it will not land into any surprise or last moment amendments.
Any sector irrespective of accounting and auditing, it is always good to keep oneself updated with the latest information. Auditing is a prime step for any organization, and updating oneself with the latest accounting pronouncements and making the necessary changes/amends can help in a good auditing process. The firm should ensure that the accounting personnel is abreast of the requisite accounting information and training so that there would not be any amiss in the auditing process for that particular year.
- Know the changes
Another important aspect of auditing is to know every detail of the organization. For example, if there are any changes that have been made and not noted down or in case any activities that are discontinued and not recorded, all these details have to be accumulated and correctly presented during the auditing procedure. Any changes in the organization that might affect the accounting and auditing process needs to be tracked and noted.
- Experience counts
If you have stumbled upon some errors in your previous auditing process, then it is time not to repeat the same. Keeping a record of the previous falters and cross-checking with the current in case of any repetition is an ideal way of not repeating your auditing mistakes. Self-reviews are the best way to ensure that you are able to jog through the memory lane and deliver better auditing this year. Apart from this, you can as well keep the auditors posted about the previous audits so that there are more transparency and smoother functioning of the process.
- Assigning and submission
Another important of successful auditing is to delegate tasks and at the end compile all the necessary documents and paper works that the auditor asked for. This delegation and completion of all the filing and paper works should be completed ahead to the audit date so that you have to not keep the auditors waiting.
The true implications of Audit go beyond pure book-keeping and reviews, and extends to the understanding of the multiple cross-cutting regulatory elements and capability of personal expertise that Auditors can bring to table. Therefore, it is important to select auditors that have right kind of local laws and regulations and understanding, and extensive experience to provide right insights that are specific to the industry and firm.
Spectrum accounts is an accounting firm in UAE with years of experience in auditing and accounting have compiled these steps for your easy processing of audit. There are a few more tips that are explained in the running blog.