An audit is all about accounting in which an auditor examines and verifies the financial statements of a company. The main purpose of auditing is to detect any frauds that the company might be facing. Secondly, it is the responsibility of an auditor to check if the company is representing its true figures in the financial statements. The auditor can thus form an opinion based on these facts. Just to ensure that the financial records of a company are presented fairly, the importance of an auditor is brought to existence. Audit solutions in Pune offer the best kind of auditing services. They help you to keep your firm on the right track. Also, they ensure that the financial statements are prepared following the accounting standards. All the investors like shareholders, customers, suppliers have the right to know about the current and fair position of the firm. Therefore, every company or firm needs to maintain its audit reports and represent the authentic image of its firm. Otherwise, the investors might file a complaint against the firm for the same. Auditor has various roles to play in a firm but there are various types of auditing that a company has to fulfil.
There are three types of auditing reports and every type is explained in brief below:-
- First Type – Internal Audit
The first and foremost requirement that every company has to fulfil is to maintain the Internal audit. This is the task that has to be performed by the employees of the organisation. This is just prepared for the sake of the betterment of the company and can be used by inside management or stakeholders only. This information should not be disclosed outside the premises of the company. It helps in improving decision making as internal audits can be used to detect flaws.
- Second Type – External Audit
After an internal audit, an external audit is of major importance. In the external audit, the opinion of the individuals outside the premises of the organisation is taken and it helps to make an unbiased decision. The external audit is independent. External auditing works as a key highlight when some stakeholder has to invest in the company. He can confidently make investments depending upon the opinion of the external forces.
- Third Type – Government Audits
The last type is the Government audits. In this, the government keeps a check on the financial statements of the company to ensure that the right amount of taxable income is listed. It helps in preparing and maintaining the financial statements accurately. This type is of utmost importance for the clients to invest their interest in a firm. So, a firm should perform wisely.
These are the most common types of audits that a company undergoes. It has to maintain all of these types to maintain its standard in the market. There are many assurance firms in Pune that can help you to maintain your company’s confidentiality. After all, the main purpose of every auditor is to ensure that the company or firm grows by representing its true and exact facts and figures.