An audit is the review, by an accounting expert called an “auditor”, of a company’s accounting to certify to third parties the veracity and reliability of this.
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An audit is an official review of a company’s accounting statements to verify the accuracy of accounting entries.
Its purpose is to ensure that all facts with economic relevance have been recorded and that the financial statements reflect the true patrimonial and economic situation of the company.
Who performs an audit?
An audit is performed by a professional known as an auditor. Auditors are the people responsible for performing audits and can be external or internal.
Auditors must prepare an audit report which is the document that contains their opinion on the fidelity and accuracy of the accounts they have examined.
It is normally addressed to shareholders or members of the board of directors.
Types of audit
External audit: Performed by an external entity independent of the company that has made the assignment. External auditors are responsible for performing audits professionally.
Internal audit: Performed by specialized personnel within the same company.
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