Audit Assurance

Audit and assurance services provide independent verification that an organization’s accounting statements, processes, controls, and reporting comply with regulations and conform to the highest standards of accuracy and integrity. Auditing examines the company’s books, records, operations, and procedures to evaluate the reliability of accounting data. Assurance confirms that controls and risk management measures are robust.

There are internal audits conducted by a company’s internal audit department and external audits performed by an outside accounting firm. Internal audits focus on operational efficiency, risk monitoring, and compliance with internal policies and controls. External audits validate the credibility of accounting statements for shareholders, creditors, regulators, and other third parties per GAAP or IFRS standards. Auditors inspect documentation, perform tests and physical inspections, interview personnel, examine internal controls, and analyze accounting statement assertions.

The goal is to identify any material misstatements in accounting reporting resulting from errors. Auditors assess the accounting policies and principles applied. They evaluate revenue recognition practices, inventory and cost of sales, valuation of assets and liabilities, disclosures, and more. Any discrepancies or control lapses are reported to management. Recommendations identify improvements to processes, systems, and controls. A clean audit report assures stakeholders that the company’s accounting position is presented fairly.

Beyond accounting statements, auditors may examine business processes related to operations, compliance, security, sustainability, and more. This helps organizations identify and mitigate risks. Particularly important is IT auditing, which assesses the integrity of data, cybersecurity safeguards, backup and recovery, IT infrastructure safety, and system acquisition processes. Audit and assurance services instill stakeholder trust, protect companies from accounting risks, and promote excellence in governance, controls, and reporting.