An audit of any kind is to ensure the integrity of information, and process operation. In the category of finance an audit looks at the financial statements in addition to the accounting practices that lead to the generation of these reports. By doing so a financial audit verifies that a corporation is following the GAAP, (generally accepted accounting principles) and is reporting the true nature of their financial operations.
A financial audit is also called an audit engagement and is performed by an outside party, (someone who has no connection to the business receiving the audit), to avoid any conflict of interests that can get in the way of true financial reporting. The process of an audit follows strict guidelines that enable the Chartered Accountant to gain access to all financial records and processes, allowing them to arrive at a conclusion verifying the financial statements as accurate or not.
The purpose of such an audit is to appease the minds of creditors, governments, and investors showing the integrity of the given business being audited is intact and in-line with honest financial reporting practices. Here in Brampton these same guidelines apply and can boost the confidence of the business landscape for possible investors when they see honest financial practices utilized. When your business uses Envolta as their accountants and bookkeepers, we can ensure that all financial statements represent the true nature of your business’s financial stature.
Some other types of audits are as follows:
- Operational audits
- Comprehensive audits
- Internal audits
- Compliance audit