Importance of Government and Business Audit
Miscellanea / / August 08, 2023
The processes and activities that are carried out in the public and private spheres must be supervised in some way. Otherwise, all kinds of risks are run: economic losses, inadequate procedures, habits harmful labor, etc.
The activity that deals with controlling and supervising the operation of something is the audit and the professional who performs this task is the auditor.
The general principle of any audit is to determine if the processes established in the theoretical plane correspond to reality
As a general criterion, the audit makes accounting sense. Through an exhaustive analysis of an entity's accounts, it is possible to determine possible failures in the business strategy. This same criterion is applicable to the accounts of a public body.
Every auditor makes an assessment of something, be it accounts, services, procedures or any aspect that can be objectively measured. Of course, for your task to be truly effective, it is convenient that you work with impartial criteria and goals
. In this sense, most entities hire external auditors to guarantee objectivity in their assessments and analysis.The data obtained in an audit are very useful
It would be incorrect to think that the auditor is limited exclusively to looking for possible deficiencies. His work is also a useful tool for determining new directions in an entity's organizational strategy. In this line, the organization and structure of any entity must be supervised periodically and systematically.
audit types
There are two general modalities: internal and external. The first is independent of the audited activities but not of the organization (this approach avoids the auditor being judge and party at the same time). On the other hand, these internal evaluations focus on the effectiveness and efficiency of management and, at the same time, fulfill an advisory function.
The external audit is based on the independence and with it an attempt is made to determine if the controls are fulfilled as they have been designed.
Apart from these two general modalities, the tasks of supervision and control can focus on all areas: the quality of a service, the systems of information, accounting and financial activity, security systems or the management of human Resources.
Examination of computer systems
The computer systems of a public body or a private company must be controlled, otherwise all kinds of risks can be generated.
The specialist in this area must examine the proper functioning of computer programs and processes and, at the same time, take into account all the legal aspects associated with computing (legal protection of programs or irregularities in data handling that could constitute a crime).
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