What are the advantages of regular auditing for fairly office management?

The regular audit is an individualized continuous report for an office that reflects a financial cost toward a specified plan which previously approved by the authority. 

 

Advantages of Regular Auditing for best managemnt of offices are described as bellow:

 

1. Early Location of Errors and FraudsIn the Continuous Audit, the audit visit the clients after a short period. So, he is in a position to check the information completely in detail. It is helpful in checking the errors and frauds easily. If the audit is conducted after the year ended. It is not possible to find the errors or frauds easily.

2. Check on FraudsIn the Continuous Audit the errors are located earlier. So it is also helpful in the early correction of errors and frauds because it is located at the time when it can be corrected earlier.

3. Quick RectificationDue to Continuous Audit errors are located easily and rectified at an early stage.

4. Special AttentionBefore the finalization of accounts an auditor has a sufficient time to pay proper attention to the checking of account and detection of frauds and errors.

5. Guidance to ClientThe auditor remains in touch with the business details, so he also indicates about the mistakes and gives valuable suggestions to the client to keep the accounts in proper manner.

6. Useful for Declaration of DividendThe continuous audit is also helpful for the declaration of the dividend. As the accounts are checked throughout the year, so the audit accounts are ready for the declaration of dividend.

7. Up to Date AccountsAccounts of the business are kept up to date by the staff because they know that auditor may visit and check the accounts at any time.

8. Chance of Over Looking Reduces Auditor has a close contact with the details of the accounts and he has also sufficient time to check the records. So the chances of over looking are reduced in this type of audit.

9. Quick Presentation of Accounts Continuous audit is very useful because accounts are maintained regularly. So as the financial years end final audited accounts are presented before the shareholders.

10. Accounts CompletionAnother audit benefit is the early completion of the accounts checking. The results of audit can be found out just at the end of the accounting period.

11. Moral Check In the continuous audit the auditor make the surprise visit in the business. The clerks are not aware about the visit. So they are alert and efficient in their work. There is less chances of frauds in this type of business.

12. Convenient for Auditors In this audit, the several visits paid by the auditor to the client’s office in enable his work to proceed easily and smoothly. It also increases his confidence in his capacity to do his work efficiently and effectively.

13. Regular Staff The regular visits performed by the auditor, make the clerks alert to maintain the accounts up to date and accurate for fear that the auditor may land up in the office any time.

14. Sufficient TimeContinuous audit provides sufficient time to the audit staff. The important and ambiguous matters may require more time to draw conclusion. There is ample time for such matters.

15. No Missing Entries Continuous audit is also helpful in keeping the full record. In the record there is no missing entries.

16. Early Correction of ErrorsThe continuous audit is helpful for early correction of errors. The auditor can point out

17. Prompt Filing of Returns The continuous audit is also helpful for the prompt filing of returns. The management can submit audited account to the registrar as soon as the end of the year.

18. Early MeetingsThis audit is helpful for the early meeting of the shareholders. The accounts are presented for the distribution of profit.

19. Surprise VisitsThe continuous audit provided chances of surprise visit to audit staff. The accounting staff becomes alert due to surprise visit. It is essential for eliminating the chances of error and frauds.

20. Upto Date RecordThe continuous audit is useful for keeping the up to date record. Such record is needed by management for borrowing funds, settlement of tax and dealing with labour union.

21. Even Work Load Due to even workload, the audit staff feels the satisfaction. The books of accounts are maintained as the routine matters. And there is less chances of errors and frauds.

22. Auditor Advice In the continuous audit the auditor can find the weakness of the business during the year and he can make the suggestion for the improvement of the business.

23. Close and Extensive Check As the auditor visits the client’s office after a month or so, but at regular intervals, a detailed close and exhaustive cheek can be possible. If the audit is to be under taken after the end of the year, such detailed checking will be difficult.

24. Technical DetailIn a continuous audit, the auditor is more in touch with the technical details and business affairs. So, the auditor can help his clients by giving him the valuable suggestions to improve business.

25. Distribution of Work Continuous audit is also helpful in distribution of load of work on the staff. The work of audit continues the whole year. The audit staff can easily make the audit programme according the time required.

 

 

An auditis an evidence gathering process.
Audit Evidence is used to evaluate how well Audit criteria are being met.
Audits must be objective, impartial, and independent, and the audit process must be both systematic and documented.
There are three types of audits: first-party, second-party, and third-party.
First-party audits are internal audits.
Second and third party audits are external audits.
  Auditing is an unbiased examination and evaluation of the financial statements of an organization .It can be done internally (by own trained personnel) or by externally (by outside audit firm).on the other way, An Examination and Verification   of Financial and Accounting Records of the Company and supporting documents   by a professional, such as a Certified Public Accountant is called auditing.
      Organizations use first party audits to audit themselves.
First party audits are used to confirm or improve the effectiveness of management systems.
They're also used to declare that an organization complies with an ISO standard (this is called a self-declaration).
Of course, such a declaration is credible only if first party auditors are genuinely independent and free of bias.
If you decide to use first party auditors to make a self-declaration of compliance, make sure that they aren't auditing their own work.
  Now we can understand the advantages of regular auditing for fairly office management as I have written bellow:       a)              Regular auditing inhibits the financial misuse of an office.
  b)             Regular auditing inhibits the corruption activities of an office or an organization.
  c)              Regular auditing helps the office or organization to spend on right ways.
  d)             Regular auditing helps the office or organization to maintain .record, store and documents keeping properly.
  e)              Regular auditing helps the office or organization to maintain account keeping properly.
  f)                 Regular auditing helps the office or organization to maintain proper budgeting.
  g)              Regular auditing helps the office or organization to financial transparency.
  h)              Regular auditing helps/recommended the office or organization to grant or sanction needed funds.
i)       It ensure proper distribution of goods and services among general people.
      .
                 

Hi - It is very important to have regular auditing, so that everything is at right time in right directions, we are paying our taxes at right time, also we get tax deductions....in some work areas/offices, bills are not filed peoperly, they are not paid timely, records are missing, employee salaries are not paid at right time, they are not recorded properly, if excel sheets are created they are not systematized, not in right folders, so much of hoch poch......

?????????????