Online Safety Community

What are the components of a Financial Audit Program?

What are the components of a Financial Audit Program5

There are various core components of a financial audit program. First, an understanding of a financial audit:

  • A financial audit is a regular exercise carried out by qualified professionals from within or outside, to check the financial health of an organization
  • It involves having to verify, examine and analyze the various data pertaining to the organization’s finance, such as financial records and financial statements
  • This exercise is carried out to assess the company’s financial status, its profit and loss, growth prospects, investments needed to achieve those prospects, and most importantly, compliance with prescribed regulatory requirements

Components of a financial audit program

What are the components of a Financial Audit Program

Components of a financial audit program can be described in a number of ways. While on the one hand, components of a financial audit program could include the exact processes and steps that financial experts take to carry out the financial audit; on the other, components of a financial audit program can include those steps and processes that companies have to implement in order to ensure the smooth conduct of a financial audit.

So, components of a financial audit program could include at least two different, but related areas. In the first of these, the financial expert(s) look into many records, primarily these:

  • The profit and loss statements;
  • Balance sheet.
One of the core components of a financial audit program is the profit and loss statement, which reflects how the company is placed financially. A good financial expert can discern the exact health of the company by analyzing the profit and loss statement.

A balance sheet constitutes another of the components of a financial audit program, as it is in this that the financial activities of the company for a fixed period of time -usually a financial year -are measured and assessed.

Other components of a financial audit program

What are the components of a Financial Audit Program3

Among other components of a financial audit program; it is important for companies to know how to conduct itself during an audit. This is all the more important during external audits. The company has to comply with regulatory requirements to ensure that it supplies all the records and data that the independent auditor may ask. Failing to provide them, or proof of fudging of accounts is a serious offence and can attract major penalties. So, it is crucial for companies to keep note of the components of a financial audit program, so that it stays compliant and maintains a name in the industry.

 

click to continue reading

Views: 6

Comment

You need to be a member of Online Safety Community to add comments!

Join Online Safety Community

Take our poll!

Take our poll!

Latest Activity

Training Doyens posted events
Friday
Soujanya Naganuri posted a discussion

Flow of SAP MM and SUS Portal

SAP Material Management (MM) and SAP Supplier Self Service (SUS) and some customizable features of SAP SUS.In the Plan-Driven Procurement with Supplier Integration scenario the SAP SUS is installed and configured with SAP MM/SRM. Technically, in a classic scenario SAP SUS maybe connected with one or more MM and/or SRM back-end systems.PO is sent to SAP SUS system, in which supplier can perform the follow-on procurement process, i.e. PO response, ASN, GR response and invoice response.SAP…See More
Thursday
John Robinson posted blog posts
Thursday
Emma Miah posted a blog post

Latest Men’s Fashion Trends For Winter

Most people will agree that fashion trends use to fade, but the style is the one thing that is eternal. So, it’s always suggested that you should only follow the fashion trends that actually suits your personality. Winter is coming now it’s time to…See More
Thursday

Forum

Flow of SAP MM and SUS Portal

SAP Material Management (MM) and SAP Supplier Self Service (SUS) and some customizable features of SAP SUS.In the Plan-Driven Procurement with Supplier Integration scenario the SAP SUS is installed…Continue

Tags: sapmmcourse, sapmmonline, sapmm

Started by Soujanya Naganuri on Thursday.

PEGA Axis error: Parser already accessed

We have a PEGA frontend, from in which we're keying in double byte characters like japanese and being send to allotted java webservice through axis. this is working best when we ship singlebyte…Continue

Tags: pega_training, pega_online, pega

Started by Soujanya Naganuri Dec 6.

VMware player error on install vmware tools.

 I've installed the last version of VMware player (4.0.2) and created a virtual machine with ubuntu 10.04. However, some operations with …Continue

Tags: training, online, vmware

Started by emmablisa Dec 1.

All About QlikView

QlikViewQlik relies on sophisticated analytics that enables data discovery using an in-memory engine to analyze data for patterns not visible via SQL data structures or queries. The company’s two…Continue

Tags: Safety, Qlikview

Started by nicolewells Nov 25.

Occupational Health and Safety 5 Replies

Health and safety are important aspects of an organisation’s smooth and effective functioning.  Did you know that workplace health & safety injuries cost Australian businesses over $60 billion…Continue

Tags: Safety, and, Health, Occupational

Started by WHS Solutions. Last reply by Tara safe Nov 16.

Badge

Loading…

© 2017   Created by Safety Community.   Powered by

Badges  |  Report an Issue  |  Terms of Service