The professionals of auditing play an absolutely vital role in our capital markets. Transparent, informative, and accurate financial reporting is the basis of the market and essential for investors to make assertive decisions about how to allocate their capital.
The independence of the auditor is part of the basis of the profession of auditing. Uma auditing independent, reliable, and ethically sound gives the company credibility and allows the public to trust the accuracy of the results and the integrity of the accounting profession. Since the early 2000s, a series of publicized accounting scandals involving corporate fraud brought up the issue of auditing independence.
An independent auditor will examine financial statements and other data that evaluate business operations and procedures. As part of a auditing, he can discuss issues with management and staff to gain a better understanding of the way in which the company operates. In addition, the professionals of auditing can monitor a company's physical inventory count, perform various analytical procedures and checks, and test supporting documents. These processes help them ensure that the company's assets are properly valued and that tax codes and laws are complied with. The professionals of auditing they can also provide valuable recommendations on ways to achieve greater efficiency for the company.
A auditing provides assurance to investors and creditors that the company's funds are treated appropriately. Auditors protect the public from investing in companies that use corrupt business practices or that attempt to defraud investors with false financial statements. When reviewing financial statements and researching accounting records, auditing can determine whether the financial statements and records accurately portray the company's true financial profile. While hiring a high-quality independent auditor is a one-sided responsibility, compliance with the auditor's independence rules is a shared responsibility between the company, its committee, and the auditor.
The auditors, together with the clients of auditing should carefully consider the scope of their work and any work they don't auditing allowed to have been pre-approved by the committee, in order to avoid prejudice to independence. For example, an auditor who provides services of no auditing To a company that has an active mergers and acquisitions business model, it must continuously monitor the impacts of all these transactions on its auditing to ensure that the auditor remains independent from all of its clients of auditing.
A auditing independent works as a certificate of the integrity of the company, confirming that it follows the best accounting practices. Its main objective is to prove the veracity of the accounting records, bringing, in addition to the advantages already mentioned, collaboration for the culture of corporate governance. That's because the auditing The independent also contributes to internal controls by qualifying the information used internally by the company, aiding in strategic planning and decision-making.
A auditing independent emerged after the opening of capital of companies, but, in particular, with the need to combat possible manipulation of information and fraud. So the main purpose of the professional of auditing is to prove the veracity of the accounting records and information submitted by a company, in addition to allowing the implementation of corrective actions to minimize errors, prevent failures, and obtain more effective and transparent processes. Audit planning is necessary to define the organization's future objectives and formalize aspects directed by the auditor in the execution of the work, facilitating communication and the performance of tasks
Contact TATICCA — ALLINIAL GLOBAL, which provides integrated auditing services, internal auditing, accounting, taxes, corporate finance, financial advisory, risk advisory, technology, business consulting and training, for more information, at www.taticca.com.br or e-mail taticca@taticca.com.br and learn more. Our company has certified methodologies for carrying out activities.
