The Importance of an Audit System to Companies

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Auditing is a means of evaluating the effectiveness of a company’s internal controls. Maintaining an effective system of internal controls is vital for achieving a company’s business objectives, obtaining reliable financial reporting on its operations, preventing fraud and misappropriation of its assets, and minimizing its cost of capital. Both internal and independent auditors contribute to a company’s audit system in different but important ways. Enables the Pursuit of Business Objectives… Read More »The Importance of an Audit System to Companies

How financial statement audits deliver key business insights

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Financial statement audits are not just a compliance exercise, but also an opportunity to gain knowledge that can generate positive business results. In many cases, though, companies are not taking full advantage of the insights that audits provide, a recent survey of 300 executives and 100 audit committee members by Deloitte’s U.S. audit practice revealed. According to the survey report, which was published in March: More than three-fourths (79%) of executives and 91% of… Read More »How financial statement audits deliver key business insights

IMPORTANCE OF FINANCIAL MANAGEMENT

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Finance is the lifeblood of business organization. It needs to meet the requirement of the business concern. Each and every business concern must maintain adequate amount of finance for their smooth running of the business concern and also maintain the business carefully to achieve the goal of the business concern. The business goal can be achieved only with the help of effective management of finance. We can’t neglect the importance… Read More »IMPORTANCE OF FINANCIAL MANAGEMENT

The Pros & Cons on Requiring Reports on Internal Control

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Creating reports on the effectiveness of your company’s internal controls is a way to promote accountability among employees and managers and encourage ethical behavior within the organization. Like all other business activities, the reviewing of and reporting on internal controls uses up valuable resources, and the benefit derived from this activity should outweigh its cost. Despite its many positive and negative aspects, reporting on internal controls can provide valuable information… Read More »The Pros & Cons on Requiring Reports on Internal Control

Importance of Reporting Mechanisms for Employee Fraud

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Corporate fraud is a white-collar crime that can potentially bring down companies and cause huge losses for investors. It is so pervasive that the FBI has a white-collar crime unit dedicated to fighting corporate fraud and white-collar crime. Corporate fraud around the globe is estimated to cost companies and governments over $40 billion each year. Corporate fraud can be reduced by instituting internal controls and providing employees with mechanisms to… Read More »Importance of Reporting Mechanisms for Employee Fraud