Auditing the accounts of an institution is like given a medical examination to an individual. It is the process by which the accounts of a company or institution are made spotless and a robust system of transactions is created. It is also a reality check for any institution. If an auditor takes his/her job seriously then the institution has an opportunity to revise its methods and improve in all areas of shortcomings.
It is necessary that every enterprise organise a self-audit both as a reality check and for neutral subjective analysis of its performance. Audits can be transaction audits or performance audits. The names are completely suggestive of their nature and both have immense importance. As an auditor I know how important both kinds of audits are for any institution.
I have great audit team and it is the reason behind my success. Any enterprise needs to identify a team of auditors with relevant and satisfactory credentials for conducting a successful audit. Internal audits must also be extremely neutral and non-partisan. For this the managers need to choose people with a long history of credibility. The next step is to design the audit process and test alternatives in small departments of an institution. Sometimes different audit techniques have to be used in different departments. A proper reading of the company regulations and federal and provincial guidelines on audits is also extremely necessary. Sound legal advice might be needed at every step of the audit process so that no rules are violated. There are certain sections of an enterprise which require confidential and sensitive auditing and care in this regard must be takes.
Any changes in company rules and policies must be reflected in audits. Especially performance audits must carefully scrutinize the performance of various policies of any enterprise. The linking of account records is generally done before an audit so that a proper exchange of information can take place. It is necessary to properly channelize this information to ensure smooth and unbiased auditing. The final audit reports have to be made public. Preparation of a detailed report is essential else the audit becomes useless. Audit results must be shared equally with all stakeholders irrespective of their position in the firm to maintain transparency and accountability which is the ultimate aim of any Audit.