Do you work in the financial sector or would you like to start working in that sector? Then you often come across terms like forensic auditing, audits and much more. In this blog, I will explain the basics of these important concepts.
Accounting is a very complex and important process. An accountant ensures that the financial figures of the organisation are kept up to date, analysed and registered. All this must be done accurately, because there is a lot involved in terms of regulations. In addition, on the basis of these figures, you can make decisions about the future or, on the contrary, avoid negative declines. A number of documents that you need to keep track of are the balance sheet, profit & loss statement, cash flow statement and income statement.
Forensic auditing is a total examination of the administration of a company. A forensic audit is used to find out about corruption, asset misappropriation and therefore financial fraud. It is therefore important that this work is once again carried out accurately, because otherwise it can have major consequences. It can even mean that a company is declared bankrupt due to mistakes in the administration.
There are several types of audit, in total three. There are internal audits, external audits and IRS audits. You may have heard of the first two, but the final one is often not so familiar. An internal audit is a total review of controls over certain financial matters of a company. This ensures that these companies comply with the various regulations and that everything is reported on time. An external audit, on the other hand, is also an investigation of the financial affairs of a company, but this is done by an external party. For example, you can hire an accountancy firm. If you operate in Amsterdam, for example, you can choose to hire an accountant firm Amsterdam. Finally, there are also IRS audits, which are investigations carried out by the Internal Revenue Service. They look at the tax return and make notes on it, so that all the information is correct.
Careers in this industry
Now that you have learned a bit more about different types of subjects, it is also interesting to know what kind of jobs there are in this industry. Fortunately, this industry is very broad and companies are often open to getting to know you. You can choose to become an auditor or an accountant. If you don’t have much experience yet, an Association of Chartered Certified Accountants (ACCA) can help. This is a particular way of gaining experience in the industry. An ACCA Audit firm can help you, so you know exactly what to expect.