The term audit often brings worry or stress to business owners. However, stress can be eliminated with proper preparation and planning. Whyte & Associates, Inc. offers comprehensive business services including audit services in Rancho Cucamonga. By understanding the types of audits, the reasons for them, and how to organize your business, our team can lessen your stress when audits arise.
Audit services are an accounting function for businesses. An audit is performed as an external review of a company’s financial or business information. There are several purposes including:
Depending on the type of business a company provides, the audits performed may vary. The most common types of audits are financial, operational, compliance, or advisory. A financial audit is the most common. This involves a review of the business’ accounting processes. The company’s method for recording and reporting financial information to stakeholders is examined for accuracy.
Operational audits ensure a company is operating according to appropriate business standards. These may be performed by an external auditor or by a company employee during an internal audit. During a compliance audit, the auditor checks to see if a company is adhering to specific external business guidelines. Rather than being used by financial or accounting firms, compliance audits are more often performed by government officials, insurance companies, or professional organizations.
Consultation or advisory audit services may be offered by accounting firms to review a business’ operations. Although less intense than traditional financial audits, these audits help determine the services a company truly needs. By using an accounting firm or a team of business consultants for an advisory audit, the business professionals can help you choose an appropriate accounting method, discuss tax planning and preparation needs, and ensure your company is running efficiently and effectively.
To learn more about audit services, contact Whyte & Associates, Inc. in Rancho Cucamonga today. Call (909) 575-0080.