Auditing

Question 1

what is auditing?

Answer 1

is the checking of external accounting reports of a business to ensure these reports are correct.

Question 2

What is internal Auditing?

Answer 2

is the checking of the operating systems of a business to ensure they are working properly

Question 3

What do internal audits include?

Answer 3

internal control- protect assts of business
Review of efficiency- the supply chain
check that business policies are being followed
detection of errors in accounting system

Question 4

What is External Auditing?

Answer 4

An independent accountant who conducts a review of the business

Question 5

What is the role of an external Auditor?

Answer 5

Protect the external users of general purpose financial reports. The external audit process gives investor confidence that the financial reports of a company are accurate.

Question 6

The External Auditor expresses an opinion as to whether or not the financial report of a company:

Answer 6

1. gives a true and fair view of the financial position of the company
2. complies with the AASB accounting standards