Auditing Using External Sources

Audits are done internally and externally. Internal should be done about twice a year, but internal audit checklists should be used every day to make sure all policies are being followed. External audits should be done once a year for large companies, and for smaller companies, more time can be in between. This is an important time for a business because everything spent is scrutinized and every check or petty cash dollar spent is checked to make sure it went to the right place. External auditing is done by professionals from an outside company and they are paid to make sure you did not make any mistakes, We will discuss the auditing process, terms, why keeping accurate records are important, and more.


Hello everyone, today we will be discussing the process we used for the audit. We are from Siege Tech Auditing Company, and have been in business since 1986. We have a record for one hundred percent accuracy. We will start by discussing the type of internal controls that should be followed by the company
The first type of internal controls is detective controls. These are designed to detect errors or irregularities that may occur. Corrective controls are designed to correct the errors discovered by the detective controls. These two processes should not be handled by the same person, as this could cause a higher chance of human error.   Human error is one of the main limitations of internal controls. Until this is done by computers, there will always be a margin of error.
Preventative controls are designed to keep the errors and irregularities from occurring. This is the most important type of control, because it can negate the need for corrective controls, and help the rest of the controls go smoothly. There are several types of preventative controls that can be used by everyone. The main controls are for example, preventing cash recorders from controlling the cash, and inventory personnel from controlling the inventory. This will keep the chance...