What does an audit do?

1, the audit work is to collect and analyze the audit data to evaluate the financial situation of the enterprise, and then draw conclusions and reports according to the degree of correlation between the data and recognized standards.

2. Review the operating procedures and methods of the organization to assess its efficiency and effectiveness; Performance audit (compliance audit); Evaluate whether the organization complies with the procedures, guidelines or regulations formulated by the superior departments.

3. Audit of financial statements: generally conducted by independent accountants to evaluate whether the financial statements of enterprises or groups are prepared in accordance with generally accepted accounting standards. Evaluate the security, integrity, system reliability and consistency of information systems in enterprises and institutions.

Chongqing Heqin Engineering Consulting Company and Chongqing Heqin Certified Public Accountants were selected for the audit of our company.

Classification of audit work:

According to the classification of audit content, China generally divides audit into financial audit and economic benefit audit.

1, financial audit

Financial audit refers to the inspection of the authenticity and legal compliance of the audited entity's financial revenue and expenditure, aiming at correcting mistakes and preventing fraud.

Specifically, financial audit includes financial budget execution audit (that is, audit institutions supervise the activities of organizing financial revenue and allocating financial funds by governments at the same level and at lower levels), financial final accounts audit (that is, audit institutions supervise the authenticity and compliance of financial final accounts of governments at lower levels) and other financial revenue and expenditure audits (that is, audit institutions supervise the collection and use of extrabudgetary funds).

Financial audit refers to the inspection of the authenticity and legal compliance of assets, liabilities, profits and losses of enterprises and institutions. Because the financial status, operating results and cash flow of an enterprise are reflected by accounting statements, financial audit is often manifested as accounting statement audit.

Financial audit has been in a dominant position for a long time after the audit came into being, which can be said to be a traditional audit; Because this kind of audit is mainly based on national laws and various financial policies and management regulations, it is also called legal audit.

2. Economic benefit audit

Economic benefit audit refers to the review and evaluation of the efficiency, effect and benefit of the economic activities of the audited entity, with the aim of promoting the audited entity to improve the utilization efficiency of human and financial resources, enhance profitability and achieve business objectives.