Outline Of The Steps Involved In Auditing
Financial accounts of the individuals or business or an organization can be checked formally by means of an auditing. Auditing code for the crypto flaw is more important and read more about Crypto Code for the proper use of cryptocurrency. Two types of auditing are done where internal auditing is done by the members of the same organization or the business place and the external auditing is carried out by the regulatory and the government agency. To have a successful auditing one should follow these six steps.
1) Request for the document
The notice will be given to an organization about the auditing and then the auditor should request for the documents which are necessary for the preliminary checklist. The list of documents required for the auditing is audit report of the previous copy, bank settlements of original, receipts and the ledger of the business details. The auditor can also get the documentation of the charts of the organization including the board and committee minutes copies and the standing rules and bylaws.
2) Preparing an audit plan
The documents collected from the organization should be analyzed and the information provided is checked and then plan is made to conduct an auditing by the auditor. A workshop is made to find the problems and after this audit plan is drafted.
3) Scheduling open meeting
An open meeting is conducted for and the senior management and the administrative staff are invited to the meeting. The scope of an audit should be presented in the meeting by the auditor. Time for the auditing should be framed and any issues regarding the timings for the scheduled vacations are planned and it should be hand over to them. Possible interviews should be informed to the staff by the head of the department.
4) Conducting fieldwork
The information gathered during the open meeting by the auditor is finalized in the plan. Procedures and the process are reviewed and then the staff members are asked to go on the field trip. The policies and the procedures are tested for the compliance by the auditor. Evaluation is done on the internal controls and has to make sure they are adequate or not. The problems will be discussed by the auditor and thereby the opportunity is given to the organization to respond.
5) Drafting a report
The reports are prepared by the auditor about the mathematical errors, payment, etc. and the solutions to the problem are recommended.
6) Setting up a closing meeting
The reports are discussed in the closing meeting and the management response to it.