The Perfect Pie Company is a small business in Barrow City Centre. The Perfect Pie Company avails customers with a range of pies, with a number of different fillings (cheese and onion, pork, meat, meat and potato and steak). Along with pies they provide a range of drinks, salads, and hot snacks for example, chips. All of which can be delivered to businesses and households throughout Barrow. Any changes made to orders can be done by calling into, phoning and lastly faxing the main office. Both sites within the Business (Main office + Kitchen) are situated five miles apart. The main office is in the centre of a business district, whereas the kitchen is five miles away in the middle of nowhere.
The owner of the Perfect Pie Company and the administration staff are based in the main office, they have two computers, one is used by the owner, for keeping staff personnel records and recording the company accounts, and the other computer is used by the administration staff to keep records of all the orders made by customers, also to print out the invoices that are given along with the food and records of any payments that are received.
Audit is a basically an examination and a review of the financial statement that have been prepared by the management at the end of the financial period. The primary function of an audit is to verify the accuracy and completeness of the accounts. Audit is performed by the auditors' in order to enhance the confidence of the business stakeholders. Auditors are appointed by the audit committee which is selected by the board of directors of the company. In this paper, we will determine the unresolved issues of the audit report. We will also discuss the importance of auditing and the use of auditing for companies and other stakeholders.
Audit is a process carried out by Auditors that ensures transparency of the financial statements and ensures that there are no lapses in the reporting or data of the reports. Auditors ensure that the financial statement are free from any error by providing the audit report after the completion of the audit which have been signed by the senior partner of the audit Auditors are not at all allowed to give an absolute assurance in the audit report due to the inherit limitations present in the financial statements. They are only allowed to give a reasonable assurance after verifying the accounting records of the company (Daigle, and Lampe, 2003, pp. 3-9).
External audit is a self-governing body which resides external of the organization in which it is providing its services. External auditors are appointed by the share holders of the company, to make sure that their investment is in safe and secure hands. In simple words, to make sure that the financial statements of the organization shows a true and fair view according to the international standards.
Internal auditors are employees of the company which act independently to ...