Question

What auditing concepts and/or skills will be most useful to your professional life in the accounting field or as an employee of an audited company? Please explain and provide specific examples. 

Answer 1

While working as an employee in accounting field or in an audited company,one have to work on the data provided by other employees or even if we are in even superior position we will be responsible in approving the accounts and responsible in creating and maintaining internal controls.Such auditing concepts and skills helps us in detecting mistatements which may either caused due to error or fraud.For example Mr.X is accountant in A LTD.While a department sends him some expenses for which they have paid cash then he must be able to find some basic details like it is properly authorised or not,no dummy payments are made etc before entering it or report it if he find it suspicious.Similarly an manager should also find whether all the expenses made are permitted by the company,whether it is within the budget and if it is over budget the reasons for it etc before approving them.Hence,these skills helps in minimising our risk in professional life.