Performing a Basic Accounting Audit

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Workbook-1205044_1920If you’ve been thrust into the role of accountant in your business and have been assigned the unpleasant task of performing an audit, there’s no need for stress. Performing a basic accounting audit isn’t as scary as one may seem. 

Once you’ve determined the area that needs to be audited, you’ll need to follow the organization’s standard auditing procedures, especially those that pertain to the division or department being audited. In the beginning of this phase, you want to also analyze any risks that could come up during the audit and make sure you have all the necessary resources you’ll need to complete the audit: staff, reports, financial information, laptops, overhead projectors, etc. 

Now it’s time to begin the audit – this Is where the “fun” begins. You’ll begin analyzing flow charts and accounting systems among other items in order to discover and correct any weaknesses in the accounting process. 

Analyze transactions and records for accuracy and notate all of the information you gather in order to be able to make changes and recommendations to policies and procedures that need them. 

The purpose of the audit is to identify weaknesses in the accounting systems and processes the company has in place, as well as any questionable transactions or activities. It’s important to be thorough, gather evidence and then produce an audit report that can be presented to upper management and department heads for review, examination and analysis. 

Once your report has been prepared and distributed to all parties involved, schedule and hold an after-audit meeting. The meeting should include the key members of your audit team as well as key members of management and department heads. 

The meeting should discuss findings from the audit including strengths and weaknesses as well as recommendations for improvement.