Audit management

2 External Audit

Audit management is responsible for ensuring that

board-approved audit directives are implemented. Audit
management helps simplify and well-organise the work
ow and collaboration process of compiling audits. Most
audit teams heavily rely on email and shared drive for
sharing information between each other. Typically task
such as submitting client request, sender reminder and
following up on ndings are all done from using broad
tools. Investing in the right software could help save time,
reduce errors and save on resources.[1]

The objectives of an external audit or audits being conducted by someone not part of the business, is when one
business audits a dierent business to determine if the
accounting records are complete and correctly prepared
according to GAAP (GAAP is the highest U.S. power
on accounting standards and they must be followed by
jurisprudence when preparing nancial information for
businesses) provisions. The organisations have a formal
Audit management oversees the internal/external audit agreement for the supply of goods and services. External
sta, establishes audit programs, and hires and trains the audits make good business exercise.[4]
appropriate audit personnel. The sta should have the Smaller businesses benet from external audit because it
necessary skills and expertise to identify inherent risks of can act as a education for small business owners, as many
the business and assess the overall eectiveness of con- small business owners don't have an in-depth understandtrols in place relating to the companys internal controls. ing of accounting. Businesses can use external auditor

to spot mistakes that might have occurred and went noticed. Errors that occur in accounting statements can lead
to businesses making bad decisions.[5] For larger corporation audit provide condence to the shareholder and investors that the gures shown in the books is reliable.[6]
Audit management for external auditors might be surpass
than the businesses they work with because they are likely
to be investing in the best software possible and are a specialist for that particular area.

Internal Audit

Internal audit is a function setup within the organisation

to reduce the risk of fraud in the organisation and runs according to the management commands. This is the main
dierence between internal and external audit where external auditors are independent of management and hence Companies have to appoint an auditor to do an annual
external auditors give an opinion on the nancial state- external audit on your accounts if your business is:
ments as presented by the management of the organisation. This is performed by the companies internal au an authorised professional rm
diting team, this can help companies improve because
strengths and weaknesses are identied.[2] Senior internal audit managers need to manage the responsibilities of
a BIPRU investment rm
what dierent people want.
an insurance intermediary

Like all supervisor that are part of the business there is a

need to:

an investment management rm
Understand what a person with an interest or concern in the business and customers want

a mortgage administrator
a mortgage intermediary

Agree aim and priorities

a mortgage lender

Plan activities

a personal investment rm

Establish resources and processes

a securities and futures rm

Record performance, making changes to keep things
on track if required.[3]

a service company[7]
1

Third Party Audit

A third party audit gives feedback to important documents and processes including quality manuals or performance development plan, records including instructing,
organisational charts, and examination of the processes
within the extent of the audit. A third party audit is conducted by an audit organisation that doesn't have the traditional customer-supplier relationship and does not carry
any conict of interest.[8] Institutions such as registrars
(certication bodies) or legislature are usually the types
of organisations that perform these types of audit.[9]

Managing an Audit

To manage an audit team in a manner to achieve good results, it is important that audit managers have strong leadership skills, workers want to work for someone that has
moved up the ranks which shows that the manager they
work with has experience doing the job team members
are doing. It is important that the teams works eciently,
carrying out audit can be time consuming so being organised and managing dierent information helps with the
productiveness.[10] Auditing involves planning, method,
facts, procedures, controls, risk, and management.[11]
Communication skills is key to many successful auditors, as you develop through your career getting you
message across in your unique way clearly helps project
your professionalism.[12] Auditors from dierent countries may work with each other to help the same client,
it is common for auditors to work directly at their client
company in their oces.[13]

Audit Directive and Regulation

It is important that the United Kingdom economy has organised and eective capital markets and there is selfassurance in the business framework through greater
transparency. Oering reliable and informative reporting supplies to this pledge. It includes the application
of global accounting principles and global principles on
auditing and requires an ongoing conversation with UK
stakeholders and EU or international law makers on measures to encourage market rmness.[14] Companies that
are publicly traded may be required to submit an audit.

References

[1] Help your teams become more audit ecient with ACLs
audit management solution. 4 Feb 2015. Retrieved 29
Oct 2015.
[2] Auditing Software Internal Audit Software & Audit
Management System. Retrieved 2 Nov 2015.

REFERENCES

[3] Managing internal audit. Retrieved 2 November 2015.

[4] Auditing Software Internal Audit Software & Audit
Management System. Retrieved 2 Nov 2015.
[5] Osmond, Vitez. What Are the Benets of an External
Audit?". Retrieved 2 November 2015.
[6] Jones, Gemma (21 July 2015). BENEFITS OF AN EXTERNAL AUDIT. Retrieved 2 Nov 2015.
[7] External audit requirements. 11 May 2015. Retrieved
4 Nov 2015.
[8] What Is Auditing?". Retrieved 2 Nov 2015.
[9] Auditing denitions translated into plain English. Retrieved 2 Nov 2015.
[10] Top tips to be a great manager. 1 February 2012. Retrieved 3 November 2015.
[11] MANAGEMENT AUDIT.
2015.

Retrieved 3 November

[12] Communication Skills for Auditors. Retrieved 3 Nov

2015.
[13] What is Audit?". 1 Oct 2014. Retrieved 4 Nov 2015.
[14] Audit, accounting and reporting. Retrieved 4 Nov 2015.

Text and image sources, contributors, and licenses

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