The digest for today is with the Department of Management and Accounting – Journals with Accounting. This is particularly under the course – Auditing.
An audit is an independent examination of the accounting and financial records and financial statements to determine if they conform to the law and to generally accepted accounting principles (GAAP). In the U.S., the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB) set and maintain these principals.
Types of Audits
Financial audits determine if an organization’s financial statements fairly represent the results of an organization’s financial operations and the organization’s financial position while conforming to generally accepted accounting principles.
Compliance audits determine if the organization has followed the laws and regulations that may materially affect the financial statements. Financial and compliance audits are often combined.
Economy and efficiency audits determine if an organization is economically and efficiently managing and using resources, such as personnel, space, and property; the causes of any problems in this area; and if the organization has followed laws and regulations relating to this area.
Program results audit looks at a specific program to determine if the desired results or benefits are being achieved and if the desired results can be achieved at a lower cost.
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