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Nov 2019
Auditing is one of the crucial services that can be conducted in any organization. Audit service has no limit it can be conducted in any department of any organization. But auditing in a company is not an easy part to deal with. Basically, audit service deals with all the financial statements of the company. All the transaction, tracking of cash inflow and outflow and get the overview of the organization is mainly the part of audit service. This is all about auditing part but the worrisome part comes when you have to manage auditors who come for audit service.
Auditing services are indeed a helpful service for business but many businessmen feel nervous to face the audit. An audit can be managed proactively with some tips and advice. Unexpected happenings will be avoided when you are well-prepared and adjusted to what is going to happen in an audit.
A good relationship with auditors must be established from the start to ensure that every process that needs to be done will be smoothly accomplished. Communication must also be active between businessmen and auditors as this will make an audit easier to handle and perform. Auditing can be done internally and externally.
Internal Auditors
The employees of the organization inside a company, assigned to check the overall aspect of every operation and other concerned departments. Compliance of a firm with the law is essential, that is why it is crucial to be audited every section of the company in a while to be sure that you are not missing anything that is needed to be done. A there to make sure that objectives, goals, and regulations are followed, especially the ones that are laid out by law in the country. Also, internal auditors find out if there are wastes and fraud that are happening inside their company, put them to stop, and prevent them from happening again.
Internal auditors also recommend solutions to the upper management to make the operations, payroll processes, etc. to be more efficient.
External Auditors
These are the auditors that are usually from auditing firms, mainly from the government sectors, hired by a company to conduct an audit. These auditors oversee the financial statements of a company to check if there are any erroneous records or even fraud. They generally put their focus on the financial records and all the cash inflow and outflow statements made by the company. Of a company to ensure that it is presented correctly and fairly.
After conducting a review, external auditors gather evidence to support their findings. Along with these, external auditors also present solutions to counter the incorrect way that a company is handling their financial statements, systems, etc. to read more about the difference between internal auditors and external auditors.
Steps to Manage Auditors while Auditing is Going On
The audit report holds the reputation of your company. If the report shows the correct report it will create a good reputation for your company. If the report doesn’t show well then the reputation of the company can be hampered. So to manage auditors we should follow some common steps to make it better.
Maintenance of Professionalism
The main ingredient of auditing service is the decorum one should maintain while conducting an audit in front of the auditors. Being the owner of your company, you should show that you know when to talk and when to listen simply. Make sure you answer their questions attentively as what you have prepared.
Present all the Documents
While conducting an audit service, one should be well aware of all the documents and sheets. A well-organized collection of reports show the transparency of your company. Most important, it will be easier for you to hand a document that will support what your company is showing and what you are saying. This will cut down the time that’s wasted on your side, finding papers and essential reports.
Well Organized Meeting
You should connect with your concerned staff and employees before the auditing process, to make sure that they know about what they are supposed to do when the audit comes. Research all the possible questions that can be asked and prepare answers according to them.
The managers should well aware of his turn to assist and answer the questions of an auditor at the right time. Make sure that your people are confident enough with their position and with the way they’re supposed to handle it.
The auditing process can be a troublesome process for them who hasn’t prepared well to face the questionnaires and for them whose documents are not ready or organized properly. We at JAXA provide all the accounting, bookkeeping and auditing service to our clients. Along with that VAT registration and all the tax handling process and business, consultancy is some of the man services of our company. Contact us to get more information regarding our company and its services for successful business incorporation.