Why Is Auditing Important?

August 28, 2011 · Posted in Auditing, Business 

Auditing is a systematic process of obtaining and examining the transparency and truth of financial records of a business entity or the government. This accounting tool determines whether the financial statements of a particular company is accurate and without a trace of deceit.

Redcliffe offers a variety of companies that provide auditing work for different institutions. The three types of auditors are internal, governmental, and external. Internal auditors are employees of the company whose financial statements are being examined. The purpose of internal auditing is to check the company’s policies, procedures, and records, and evaluate the company’s plans and attainment of goals.

External auditors, on the other hand, are not employees of the company being audited. They evaluate the honesty of a company’s financial statements and issue a written report that contains the opinion that they have formed regarding the company’s financial statements.

At Redcliffe, auditing is done in a systematic manner following four steps: planning, gathering evidence, evaluating the evidence, and issuing a report. Auditors are required to go through detailed education and training that prepare them for the pressure and stress of handling complicated auditing tasks.

Certified accountants at Redcliffe employ a systematic and carefully planned manner of auditing in order to accurately gauge a company’s financial status. The work they perform provides useful information to potential stockholders, managers, and even external players such as lenders because auditing allows the internal and external clients to accurately assess a company’s financial stability, thus, making way for investments to push through and aiding in the management’s decision-making.

A company needs auditing in order to ensure that the path the organization is taking gears toward the goals that have been set and does not stray from the regulations set by the government and the company itself. Thus, it is important to have unbiased, independent auditors to check on the consistency of these goals.


Leave a Reply

You must be logged in to post a comment.