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What is an audit?

If you want to know more about accounting and auditing and other financial terms, you are at the right place now. In this blog, we will explain everything you need to know about auditing. But first things first. Let’s answer the question: “what is an audit”? Well, an audit is a systematic periodic financial check performed by an auditor. With the help of a checklist or question list the auditor checks if the desired financial numbers correspond to the initial numbers. 

 

Performing an audit is very important for companies. With an audit they can see if their business is growing or is not doing well. There are different types of audits, auditors perform. 

Reanda is a well-known international auditing, tax and advisory firm. They know everything about the international financial markets and know exactly what every company needs. So if you are looking for an audit firm who knows what to do. You can always contact Reanda-Netherlands or another branch. 

 

An audit firm is focussing on the external audits and the company itself on the internal audits. We will explain what the difference is between the audits.

External audits

Like we said an external audit is carried out by an external company like an audit firm. The audit firms check most of the time the audit for the whole company also called as the certificate-audit. There are also different types of external audits. 

 

Certificate-audit

With this kind of audit the external auditor will carry out a quality check and if the company will get through this check it will get a certificate. The certificate is from ISO. Every three year, the audit firm has to recheck to see if the company still deserves the certificate. 

 

Distributor audit

A distributor audit can be carried out when the company order product from a distributor and there is a flaw or error. The company can ask the audit firm is they want to conduct an audit and check the quality management of the distributor.

Internal audits

The internal audits are performed by internal auditors from the company. The main focus of the internal audit is about mistakes that are made and how they can be corrected and improved. It is about chance and risk management and improving the business in its results. Within the company, there are different people who can perform the internal audit. 

 

Quality auditor

The quality auditor is specialized in systems and quality procedures.

 

Operational auditor

This auditor checks if the organization is well constructed and if everything works within the organization.

 

Financial auditor

The financial auditor controls the financial streams of the organization. 

 

IT auditor

And the IT auditor is responsible for everything that has to do with IT like hardware and software.

 

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