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Audit Plan Template

Audit Plan Template

March 19, 2020 Plan No Comments

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The Importance of Making an Audit Plan Template

A company or business that wants to continue to develop should always do an evaluation of work management. One of the most important things to do to ensure the work program is running well is to conduct an audit.

An audit is carried out to control the work program and possible problems that might occur. Before conducting an audit, the auditor will prepare an audit plan template to arrange various things that can be used as a reference in conducting the audit.

Knowing the meaning of the audit plan

The audit plan is the stage prepared by the auditor to help in analyzing the work program, the possibility of problems, risks and other things that will interfere with company performance, especially financial statements. This audit is usually carried out by internal audits and external audits.

Internal audits are usually carried out by employees of the company with a regular system such as monthly to yearly. Meanwhile, an external audit is carried out by a body or agency tasked with conducting an audit of a company to ensure that the company has carried out a work program in accordance with standards that have been formally determined.

The purpose of the audit plan

Basically the purpose of conducting an audit is to improve the quality of the business and minimize existing problems. It is conceivable if a company does not conduct an audit of its business, then the possibility of business will experience chaos. This is due to the lack of control over company performance.

In order to increase the effectiveness in conducting audits, the auditor will make an audit plan template as a reference material that can help auditors to analyze and evaluate the performance of the company in its business activities.

Usually, the regulations that have been formed will be different from the implementation directly, this is the importance of the audit activity. The auditor will know the problems that might be happening so that the work risks that will be caused can be prevented early on.

In conducting audits, problems that exist in work management will be known so that it is faster to be handled. Problems that are not immediately addressed in the company will usually spread to other problems, so this needs to be prevented immediately. The auditor will check the problem and allow the problem to be resolved more quickly.

The importance of conducting an audit plan

As mentioned before, basically conducting an audit can provide many benefits to improve the performance of the company. The importance of auditing the company is to control the company’s management so that it runs in accordance with the goals set by the company by ensuring the system continues to run well.

The most important thing is to ensure that financial statements are also in accordance with reality. Finance is a vulnerable thing so it is important to continue to do the audit. Poorly controlled financial statements will affect the company’s operational activities.   

Therefore, maintaining a balanced balance sheet is important to continue to do. Then the importance of conducting an audit is to control or find out whether there is fraud in the company. The possibility of fraud, especially on financial statements will be known by the audit. The preparation of the audit plan template will enable the auditor to carry out a more effective process of identification and analysis.

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