What Type Of Accounting Is Internal Auditing?

What is Audit Accounting?

Audit accounting plays a key role in ensuring the accuracy of a company's accounts, and the fairest or most efficient distribution of finances. Discover what is involved in audit accounting, and why it is such a popular career path for graduates. When businesses and public sector entities are under growing scrutiny over their budgets, it is the duty of audit accountants to review financial records to ensure they are reliable and compliant. Audit accounting can be an internal process that focuses on risk mitigation and recognizes areas where cost savings can be achieved. Instead, the audit accountants may be independent experts conducting external audits on company accounts.

How is audit accounting different from other finance routes?

Audit accounting differs from other financing routes since the nature of financial accountability means that you have to work on strict deadlines, with a keen eye for detail and a willingness to challenge the status quo. 

While an accountant provides advice and support on tax returns, bookkeeping and cash flow, an audit accountant digs deeper into the documents looking at an organization's finances in detail. Audit accounting also differs from positions such as asset management and investment banking, as it focuses on targets related to governance and enforcement rather than through the finances of a business. It's all about making sure that the numbers add up to dot the I's and cross the T's by careful analysis and administration. When protecting an organization’s financial health, there is no stone left unturned.

Roles in the audit accounting sector

Audit accountants tend to fall into two main camps – internal auditors and external auditors. 

Internal audit accountants

Large organizations, especially those in highly regulated sectors such as finance and the public sector, tend to hire audit accountants to help them achieve compliance and accountabilities. As well as ensuring that the books are balanced and that all profits and outgoings are accounted for, an internal auditor can identify areas where the company can become more productive, particularly when buying multiple-site materials.

External audit accountants

Externally working gives you the opportunity to work with multiple organizations to audit their accounts to ensure that they meet requirements. This could be related to tax liabilities for HM Revenue & Customs, allocation of funding to public bodies, or financial health for private companies working with government organisations. Audit accountants measure a range of metrics, depending on for whom they are working.
 

Essential skills for audit accounting

• Scrutiny – you need an eagle eye to spot anomalies in reams of accounts
• Strong communication – you find it easy to articulate yourself on paper and in person, for writing up reports and presenting your findings
• Problem-solving – you always look for opportunities to eliminate problems and present areas for improvement
• Time management – you aren’t phased by deadlines and fast turnarounds
• Confidence – you will speak up when you believe something is amiss and challenge the status quo

Do You Need Help Getting Ready For An Audit?
 

Are you terrified of you, your business or your non-profit getting audited by the IRS? Do you wake up in the middle of the night at the thought of hearing that knock on your door? Call Robert Arnon CPA today so you can get busy relaxing tomorrow! We also handle internal audits, of course.  We specialize in helping HOAs, non-profits, small and mid-sized businesses make sure their books are in order. So if you’re even a little concerned, now is the time to act. Contact us today!

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