The company audit process is necessary to assess whether the defined procedures are respected in the various areas and activities of a “company system” if the roles and duties are clear if the company objectives and policies are correctly managed and pursued. For companies structured under the provisions of regulations, this process of investigation and verification of compliance is periodically necessary.
An effective audit should be conducted by a professional auditor, with proven experience. The auditor’s activity must take place in full collaboration with all the company staff. This is to obtain a data collection as complete as possible which, by investigating the causes, will allow to highlight the missed objectives and the discrepancies with the adopted model. Only in this way the auditor, after having mapped the risk areas, will be able to propose suitable solutions to the structure and the different business needs.
Professional auditors able to work in full collaboration with the client’s corporate staff to collect all the company data necessary to highlight any discrepancies, investigate their causes and propose effective, efficient, and adequate solutions for improving corporate information towards third parties.
The effectiveness of the auditing process depends on the depth of the analysis and the organization of the data acquisition protocols that the auditor has defined, but also, and above all, on the ability to exit from standardized schemes and prepare an adequate and specific procedure inherent to the specific company reality under analysis.
The auditing process takes the form of providing the customer with a report from which ideas emerge for improving the processes, management, or compliance status of the company and/or the specific area investigated.
Best audit firms in India are flexible and can fully provide an external-internal audit function, as well as act as an accessory partner under the needs of a particular department.
Auditing is an important task in reviewing a company’s finances and overall operations. Failure to do so will not only violate the law but will also lead to a situation in which social credibility is lost and the cooperation of investors cannot be obtained.
In conclusion
Every company, like every professional firm, should understand the importance of having a control and risk management system. This system consists of procedures, protocols, organizational structures that guarantee the correct functioning of the organization. In this system, the audit is the tool par excellence for assessing and monitoring the adequacy of the measures adopted. Only in this way, that is, by reasoning in systemic and procedural terms, it is possible to safeguard the assets of the organization, be it a company or a professional firm.
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.
Posted by:
CA Aman Aggarwal
AKGVG & Associates