Question

Audit and Investigation- Please assist me in answering this in essayform please. Thank you so much

As part of the planning an audit and designing an audit approach one major part of the planning is to understand the client’s business and industry. Select a specific business example and provide a bullet point analysis of what would be of interest in the understanding of that client business and industry and its impact on the audit

Answer 1

In general, Auditing is conducted to verify the extent of truthfulness and fairness of the financial records of an entity, but Investigation is performed to prove a certain fact. ... Unlike investigation is a severe examination of specific records so as to highlight a fact.

An audit is the examination, inspection and verification of any organization, system, process or product. An investigation is an in-depth and detailed examination. An audit is performed to catch hold of any deviations in the accounts.

An investigation is detailed scrutiny of selected activities which will help us understand the process in a better and comprehensive way. An investigation is the complete enquiry of specific accounts or records of a business. An investigation is generally used to prove a particular fact, and this makes it very crucial in accountancy, financial management and journalism. As investigation focuses on a specific part or service of the organization, the management can find the flaws in a process by performing the proper research of the activity.

them.AuditAn audit or a financial audit can be defined as the inspection, examination or verification of a system, process, project or product. An audit is usually performed to find out the authenticity of the product. A review will also help to understand the working of a particular process and if the proper procedure is being followed or not. This examination is generally conducted by a separate third party which has no relations to the company being audited. A business organization should conduct an audit at regular intervals to keep a check on the process being followed. The audit report prepared at the end of the audit process will tell the management of the company what needs to be improved and which part of the company can be developed further.