ABSTRACT
An audit is normally thought of as the annual independent verification of a company’s accounts for the benefit of its shareholders. From the company managers’ point of view, such audits are not primarily directed to assist them achieve their goals and objectives. The external auditor’s primary purpose is to report to the shareholders, not to report to management. Management must also ensure that the assets of the business are protected against losses. Losses of assets can also occur in the process of transactions. An essential part of a control system is evidence of performance. It is necessary for individuals to sign to indicate they have done a piece of work or performed a check and that whoever checks or approves or scrutinizes their work also signs to indicate they have done this. An internal audit to ensure compliance with control will follow the normal audit process of standard-setting, investigation, reporting and action.
