Free «Audit Problems Solution» Essay Sample

Audit or audit revisal is a procedure of independent estimation of company’s activity. In general use it is accounting revisal of organizations for creation public information about its reliablility.

The main task of audit is detection of wrongful use of funds by company or its employees. Moreover, audit is a way to protect money of participants in finance market. Audit is not only detect any illegal cashflows, but also verifies quantity of goods and its presence, to detect any thievery.

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Forasmuch audit is a obligatory process for public companies its importance is very high, cause every public company is using absentee owners money for company’s task realization. So accurate audit is a way to protect market –participants. There is 2 facilities in this situation. First, when firm has something to hide and that firm try to pass money in auditor’s pocket to continue its activity without problems, or to sell its capital stocks. Second, is without bribery when auditor makes mistakes in process and not detect problem moments.

To conclude, the best way to improve audit quality is a growth of audit firm responsibility and issuer responsibility, so that every public company is accountable to all its shareholders. Moreover, growth of attention to audit firm members from tax control services – their accounts, deposites etc is a good way to minimize risks, linked with rascally audit results and its consequents. Moreover, hire of audit firms form Big Four is best way, cause that firms are valueing their reputation and their size is too big for any bribery.

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