What Is Auditing?

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Any company needs to make sure that all the information on the report is true and also accurate, and that it displays the company’s financial situation. So in order to do this, they need someone who has no connection with company’s interest. This is where an auditor comes in to play. The process of making sure that the company’s financial reports are correct is called auditing. An audit is usually done once a year (Epstein, 2014).
An auditor will get all the information together that will support any and all evidence and tests and works with them till they get an accurate statement. An auditor will also get an opinion on all the financial statements to make sure they are all accurate and are not misleading. An auditor will also ask management
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The company will rely on the CPA to be accurate and knowledgeable about their company’s financial status. The CEO will make sure that the work of the auditor is correct and issue it to the public. But the main job of the auditor is to make sure that all information on the financial statements are true and accurate (Epstein,…show more content…
The PCAOB has rules that are set by the government, for example, the regulatory functions. These rules that are set by the PCAOB are just like the rules set by GAAP.
When the auditor is there the management and staff should be truthful. The company should answer all and any question the auditor would have. The staff should not elaborate on any question, and treat all auditors will the utmost respect. Management should make sure that all paperwork is ready for the auditor, and have a file made just for this certain audit. The company should know that the auditor is looking for expenditures that go with the approved proposal and budget. Make sure that there is solid documentation. And also, make sure that everything is in compliance with OMB circulars, especially A-21, and the DS-2 (Lynee, 2015).
When the monitoring process is going on the company should know that they will need to look closely at the salary limitations, effort reporting, cost sharing, program income, F&A costs, fabrication, and also alterations (Lynee, 2015). Once the audit is over the management, and also the internal audit department needs to read all documents carefully and make sure everything correct. The company needs to also follow up with any audit action plan (Lynee,
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