Question

Describe your thoughts about having an outside auditor review your financial management of your department. What would be your reaction if the auditor found that supplies were unaccounted for, and what causes would you consider for this finding?

Answer 1

Answer: Having an outside auditor review the financial management of the department as most of the companies does it, they often hire external auditors in addition to auditing themselves. They examine company records and operations to ensure financial statements are accurate. External auditors are important to establishing your small business' credibility and to ensuring compliance with tax laws. This is beneficial for the company as there is relaxation in the tax laws. An external audit can also pinpoint where compliance efforts may be lacking. Since an external auditor has no reason to be anything but honest about the status of financial compliance, we can rely on the independence of the investigation and on the recommendations being made.

If the auditor found that supplies were unaccounted, I would look ino the matter and will try to find it out the main reason. Everything that comes in and out has been bar-coded and is tracked.