Financial auditing is the process of examining an organization’s or individual’s financial records to determine if they are accurate and in accordance with any applicable rules including regulations, accepted accounting standards, and laws. 

External auditors come in from outside the organization to examine financial and accounting records and provide an independent opinion on these records to our clients. Law requires or important that all public companies have their financial statements externally audited.

Internal auditors work for the organization as internal employees to examine records and help improve internal processes such as internal controls, operations, risk management, and governance.

Auditing Standards 

The Public Company Accounting Oversight Board PCAOB maintains external auditing standards for public companies issuers or problems registered with the Securities and Exchange Commission SEC.

Audit Planning

• Audit planning includes deciding on the overall audit developing and strategy an audit plan. For internal auditing, the Institute of Internal Auditors provides guidance for audit planning to the customer. Planning starts with determining the objectives and scope of the audit.
• Internal auditors need to understand the operations, business, and unique characteristics of the department or unit being audited and to develop an audit plan that defines the procedures needed to do an effective and efficient audit.