Choosing the Right Type of Audit

In the business world, auditing services are both a necessity and a legal obligation for any commercial enterprise. It acts like a monetary review that highlights a company’s business processes and internal systems, which is often a requirement for larger organisations. Auditing can be done internally by the company or the company might also choose to take help from other professional auditing companies.

But there are different types of auditing services available and choosing the right one will hold many benefits for your organisation. You can choose between internal and external audits and they both have specific processes to follow. Depending on your business needs, you can obtain one or both of these and they can truly help to make your business even more compliant and successful at the same time.

Internal Audits

Internal auditors are essentially a team from within the organization that conduct a financial audit on the finances of the company and then reports the advances to the directors. These internally conducted audits help the company in developing better risk management schemes for the company. It is also the responsibility of the auditing committee to ensure to check the effectiveness of the current risk management policies of the company. The work of such auditors seems like a more continuous process and based more on the internal operations of the company.

External Audits

On the other hand, the external auditors do not belong to the organization they are auditing. External audits, unlike internal financial audits are conducted by an independent body of auditors that reports directly to the shareholders of the company. The external audits conduct a thorough check of the financial management of the company in question. The appointment of external auditors is generally carried out by the shareholders of the company. In most of the cases the shareholders have a discussion with the directors of the company prior to the appointment of the auditors.

There are various types of auditing services available and these include financial, operational, compliance, and investigative audits. Colin Smith & Co was established in 1979 and has a history of excellence and success. They specialise in audit, accounting, taxation and business advisory services, and work with a variety of markets.