Companies and businesses face various risks that dictate how they operate. Identifying and managing these risks is a critical function that companies perform. Usually, the audit committee and internal auditors are responsible for risk management. This process became more relevant due to some high-profile corporate failures in the past. The Turnbull Report on corporate governance

Every company has an internal control system that helps it in risk management. Internal controls have several purposes, including protecting assets, preventing frauds, ensuring the integrity of financial and accounting systems, promoting accountability, etc. Some companies assume internal controls are futile and costly. However, they can also improve a company’s operational efficiency and effectiveness. Like

The primary objective of an audit engagement is for auditors to form an opinion about the subject matter. This subject matter is usually the client’s financial statements. The auditor is responsible for ensuring that these statements are free from material misstatements. Once they do so, they can provide the client with assurance. Assurance engagements are

Under many jurisdictions, public companies have to perform external audits regularly. For other companies or organizations, these may be voluntary. However, a company’s stakeholder may request an audit report, which will compel it to perform an audit. These audits provide stakeholders with the confidence they need to make decisions based on the subject matter. External

A company’s internal controls play a significant role in whether its financial information is reliable. For both external and internal auditors, these controls are highly critical. Before starting their audit process, auditors will assess the company’s internal controls. During this process, they aim to identify any weaknesses or deficiencies that may make the financial information

Internal controls are the backbone of a company. If companies have a robust internal control system, they can obtain better efficiency in their operations. Usually, these controls are a part of a company’s financial and risk management processes. Internal controls can help companies internally and externally. Usually, stakeholders are likely to trust companies with an

Companies rely on information technology in several fields. However, it is also vulnerable to various security issues and breaches. Therefore, companies need to have measures or safeguard to protect their systems from such manipulation. Usually, they need to ensure that their systems perform according to both internal and prevalent standards. For that, they need to

Auditors examine a company’s financial statements and record to form an opinion about them. For internal auditors, it may also include assessing the company’s internal controls. Both external and internal auditors gather evidence during this process. Based on this evidence, they can form an opinion about their related audit area. Once they do so, they

Auditors examine a company’s financial statements and related matters to form an independent opinion. This opinion concludes that these statements are free from any material misstatements. For that, auditors need to have a basis, which comes from audit evidence collected during audits. This evidence needs to be sufficient and appropriate for auditors to reach a