Non-financial audit Essay Example | Topics and Well Written Essays - 2250 words

Non-financial audit - Essay Example Additionally, an assessment of that particular business system is also provided during the auditing process. In this regard, generally accepted standards should be adhered by such systems that are governed by specific bodies, which are responsible for the regulation of businesses in their sector. However, the technique of random sampling is used during the auditing process. Therefore, it is not assured by the auditors that their results are perfect and free from errors regarding those specific financial statements. One of the primary objectives of an auditor is to assure external users and third parties that the company’s financial conditions are fairly present in such statements. In this regard, quality control certifications are also provided and issued by various auditors, such as, ISO 9000, etc. As we have tried to understand the definition and purpose of performing the auditing process, it is important to know that Audit has been divided into two different sectors, as per their objectives, processes, and results. These areas are Financial Audits and Non-Financial Audits. The financial audit is an important type of audit. Financial statements are determined through the designing of financial audits that assure the fairness of these statements as per the International Financial Reporting Standards, also known as IFRS. GAAP, that is, Generally Accepted Accounting Principles are also considered by the auditors and accountants during the process and evaluation of financial statements through the financial audit process. In the United States, all publicly registered companies require the financial audits on semi-annual or annual basis. In addition, private companies, public entities, registered charities, and governmental bodies may get the financial audits for proving the fairness of their operations and results. Typically, financial audits are requested by the