How many auditors are there

A tax audit could be performed as the result of in-compliant found by a government agency or the schedule set by the government tax department. An entity needs not invite or engage with the tax authority to come to perform a tax audit.

They will come by themselves. Entity just needs to file its tax obligation properly and timely based on the tax law of the country. To minimize the penalty as the result of the tax audit, the entity is recommended to follow all the requirements set by tax law and for those areas that they are not sure about, the entity should engagement with a tax consulting firm for advising. As said above, the big four firms are also offering such a service.

An information system audit is sometimes called an IT audit. This type of audit assesses and checks the reliability of the security system, information security structure, and integrity of the system so that the output that the system produces is reliable.

Normally, before relying on information systems software that use for producing financial statements, auditors are required to have IT, audit teams, test and review that information system first. Especially, when an entity uses an ERP system where the operational reportings are also integrated with the accounting system.

For example, a banking system normally links operational reporting with the accounting system. As you can know, most of the big firms have this kind of service. They do not only provide IT audits but also offering consultants on the information system areas. A compliance audit is a type of audit that checks against internal policies and procedures of the entity as well as laws and regulations where the entity operates.

For example, in the banking sector, there are many kinds of regulation required bankers to follow and comply with.

Most of the central banks required commercial banks to set up the complaint review assessment or compliance audit to make sure that they are complying with those laws and regulations set. Value for money audit refers to audit activities that perform in assessing and evaluating three main difference factors: Economy, Efficiency, and Effectiveness.

Economy, auditor assess and evaluate whether the resources that entity purchases are at the low cost with acceptable quality where efficiency audit, auditor check whether resources that entity use have better conversion ratio. Effectiveness, by the way, looks at the big picture of the objective whether the entity using the resources meets its objective or not. Value for money audit is really important for the entity since it helps the entity not only to improve resource efficiency usage but also to make sure that the entity obtains good quality material at a low costs.

Review financial statements is a type of negative engagement where auditors are engaged to review the financial statements of the entity. At the end of the review, the audit is not going to express whether financial statements are the true and fair view and free from material. But, the auditor will issue the opinion to say that there is nothing come to their attention that financial statements are not prepared true and fair view and free from material.

This kind of service is normally required when an entity borrows money from the bank. And the banks, as part of their policy require the entity to provide financial statements reviewed by the external auditor. Or sometimes it is requested by management to have their financial statements before asking for the auditor to audit the financial statements. Or sometimes it is required by management for their internal use. The agreed-upon procedure is the type of negative engagement where auditors perform their review on the procedures that are agreed with the client.

This type of engagement is called limited assurance. Auditors will also need to ensure no conflict of interest between the audit team and the client management team. The company's outside, independent auditor then subjects the financial statements and disclosures to an audit. During the audit, the outside auditor obtains an understanding of the company's internal controls and then applies "auditing procedures," which may include inspection of the company's books and records, observation, inquiries, and confirmations.

The procedures the outside auditor uses must be sufficient to allow the auditor to obtain enough competent evidence to express an opinion on the fairness of the financial statements and whether they conform to GAAP in all material respects. If the auditor cannot reach that conclusion, then the auditor must either require the company to change the financial statements or decline to issue a standard audit report. An audit provides the public with additional assurance — beyond managements' own assertions — that a company's financial statements can be relied upon.

As the U. Supreme Court stated in the landmark case of U. Arthur Young : "The SEC requires the filing of audited financial statements in order to obviate the fear of loss from reliance on inaccurate information, thereby encouraging public investment in the Nation's industries.

The best way to identify the auditor of a publicly traded company is to check the company's most recent filings using our EDGAR database of corporate filings. You'll find the identity of the company's auditor in its annual report on Form K. Whenever a company hires a new auditor to certify its financial statements, it must announce that news on Form 8-K under Item 4 within 5 business days. Be sure to check any Form 8-K filings submitted after the company's most recent annual report to find out whether the company subsequently hired a new auditor.

A variety of commercial resources exist that list publicly traded companies and their auditors. Having the IRS audit your tax return is a daunting prospect, but analyzing mistakes in tax returns is only one type of inspection that auditors perform.

Auditors also verify the accuracy of a company's operational and financial records, and they even delve into the exciting world of employee theft and securities fraud. Government auditors examine and maintain the records of government agencies. A government auditor may audit private businesses and individuals, in which their activities are regulated or taxed.

Forensic Auditors: These auditors specialize in crimes and are used by law enforcement organizations to help identify financial fraud and theft. However, the crime itself is not always of a purely financial nature.