1: audit definition
2: how audit works
3: audit vs account
4: example of audit
Opening information:
Audit means the idea of researching a current and past history of debits and credits of one system or Industry.
Where this audit is the one that shows the reports of income of any Industry, so now let’s have a look at what is an audit, how the audit works in the stock market for all Corporate Industries and stock Investors, and what difference between the audit and account, finally one clear example 0about the audit.
1: audit definition
Mr. Malik is the person who tracks the rack and then researches the all credit and debit of any business.
Malik is the one who is considered to be the best statement creator for researching debts and credit information for any kind of company in his city.
He didn’t work for any specific
company instead he charges fees for his work based on the size of the Particular business.
Whenever some Corporations even lack the information for submitting reports or documents, Malik gives such Industry ideas and fixes their information based on the expenses of certain organizations.
Malik’s created statements are clear and easy to understand, and the reports of credit and debit show each answer accurately.
When the specific business is involved in the tax Category, Malik also works with a tax advisor to reduce the tax burden of one Industry.
Here the malik activities of researching the debts and credits of the whole variety of ways to perform the account statement is called an audit.
So now let’s dive into know, how the audit works in the stock market for all the public Industries among stock Investors.
2: how audit works
The audit is researching the debt, credits, and holding assets of one Industry, where these credits and debits are represented in a different statement.
The credits and debts of one public are researched in the manner of submitting the business information to its shareholders.
The research of credits and debts of the whole Industry is called an audit, whenever this research of conducted or run by some person they are normally considered as a auditor.
Every company that’s listed on the stock exchange would have their business auditors, who they work under the business credits and debits to be separated into three different reports of statement.
Where these three different statements were about income, company balance, and debts, and finally one was about cash flow.
These income audit reports became income statements, balance and debts considered as balance sheets, and then cash flow statements.
These all statements would be first audited and written by business auditors, but this doesn’t qualify for the Security and Exchange Commission SEC.
SEC must require the audit from a certified public accountant (CPA), for this reason, such businesses need to do the audit review by the public account. Where these certified public accounts are members of the American Institute of Certified Public Accountants (AICPA).
Any of the people who are not members of AICPA would not become and do public audits for the public organizations.
The reason the SEC demands audits from external auditors without any inside or internal auditor is to prevent fraud and cheating information from any of the public Corporations.
The Public Company Accounting Oversight Board (PCAOB) is a government agency which is the one regulates public company auditing sections.
Where this auditing works statement is the one which shows the worldwide Investors to make any kind of decision towards such an Industry.
Most people are confused about the audit and account, let’s jump into the key differences.
3: audit vs account
The difference between an audit and an account is, that an audit shows the reports of research of one credit and debit information.
An account is not about credit and debit research it’s about the tracking and recording of the information of debits and credits of one portfolio.
So the key difference between the audit and the account are account becomes part of the audit. To make you more clear about the audits let’s look into one clear example anyway.
4: example of audit
Say company J had referred the one person who can do the certified public accountant (CPA), this CPA is the one who researches, checks, and writes a statement for Public company J.
Company J helped them with the audits by creating software to track and hold all the credits and debts proof of the certain business.
This helps all CPA to review all the information of the income about such business, here the research for checking is audit, and the record and track income of debts and credits is account.