28 June 2010
pls let me know what are the different aspects which differentiates internal & concurrent audit from each other. state the meaning of socks audit & management audit.
28 June 2010
INTERNAL AUDITING is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. Internal Audit focus on the audit of the internal control and procedures of the company. It is done normally by the employees of the organixation and report is presented to the management of the company. In short, it is concerned with the checking of internal policies and preocedures, existence, evaluation and folow up.
CONCURRENT AUDIT is a systematic and timely examination of financial transaction on a regular basis to ensure accuracy, authenticity, compliance with procedures and guidelines.The emphasis under concurrent audit is not on test checking but on substantial checking of transactions. The concept of concurrent audit has been introduced to reduce the time gap between occurrence of transaction and is overview or checking. The concurrent audit serves the purpose of effective control as it is normally conducted by external agencies like chartered accountants firms.The main objectives of concurrent audit include that any violation of procedure is brought to light. In short, it involves regular check up of the transactiona and activities without giving too much time gap.
MANAGEMENT AUDIT is the systematic assessment of methods and policies of a firm's management in the administration and the use of resources, tactical and strategic planning, and employee and organizational improvement. Its objectives are to (1) establish the current level of effectiveness, (2) suggest improvements, and (3) lay down standards for future performance. Management auditors (employees of the firm or independent consultants) do not appraise individual performance, but may critically evaluate the senior executives as a management team. In short, it is concerned with the checking of the activities of management.
STOCK AUDIT is concerned with teh detailied analysis of the stock position of the company with refeerred to physical inventory, inventory accounting, loss on stock, management to avoid shortage or excess supply, safety, and other aspects to ensure teh smooth flow of production cycle. In short, it is concerned to check al matters related to stock and inventory management.
28 June 2010
Internal audit is conducted usually by people from within the company. So This is also known as first party audit.
Concurrent audit is a systematic and timely examination of financial trascation on a regular basis to ensure accuracy, compliance with procedure and guidelines.
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