Financial auditing is the process of examining an organization’s financial records to determine if they are accurate and in accordance with any applicable rules (including accepted accounting standards), regulations, and laws. To ensure that a company has financial and accounting policy & procedures which is followed effectively, to safeguard that there is no loophole in the day to day activities.
An HR compliance audit focuses on how well your business is complying with local employment laws and regulations. This type of audit can be greatly beneficial to the company because it can help ensure that the company is on the right track as staff receive and renew contracts, receive increments, create handbooks, establish job descriptions, and set expectations for the new employees. An HR audit is the only way one can fully assess whether the HR processes and policies are benefiting or harming the overall business.
Auditing allows one to step back and look at where the money is going. An audit detects and protects against fraudulent invoices. Billing schemes are, for instance, the most common form of fraud for businesses
The aim of an operational audit is ultimately to optimize efficiency. By auditing the business’s internal policies and procedures, the company can identify trouble spots and with corrective actions can operate more effectively and efficiently. Gain a greater understanding of how policies and procedures can boost effectiveness. A full operational audit identifies risks, potential problems related to fraud and compliance. By examining each step of the operational process, an audit can dive deeper into the impact of any changes to internal controls.
Risk management must control identified risks to help the company achieve its performance and profitability targets, prevent loss of resources, ensure reliable financial reporting, and ensure compliance with laws and regulations, avoiding damage to its reputation and other consequences.
Providing clients with a comprehensive forensic audit, it provides them with leverage should they want to proceed with legal proceedings against any who has committed fraud or any financial crime. The audit report will be presented as a file for evidence against the offender, in the court of law.