THE ROLE OF AUDITING IN ORGANISATIONAL EFFECTIVE

Abstract

In the questions section of the module there is a case study where you can practice all the knowledge gained in this unit so far. The case study is called Start ford Yachts and it also has the answers for you to see how you got on. An Audit plays a valuable role for companies and charitable organizations to maintain integrity and specific goals. An effective Audit helps organizations achieve goals and objectives by measuring overall performance and productivity, as detected in transactions and business records. An Audit protects an organization from financial misstatements, presenting a reliable health picture of the organization to the markets. Audit is nothing but an independent and systematic examination of statutory records, books of accounts, documents and vouchers of an organization. This mainly performed or conducted to ascertain how far the financial statements as well as non-financial disclosures present a true and fair view of the concern. Audit is an activity that attempts to ensure that the books of accounts are properly maintained by the concern as required by law. Audit is an effective tool for a Business Management, as internal audit is conducted in order to ensure the policies are being followed. It enables to make valuable suggestions for improvement and to formulate future policies of a business