Audit Sample

Audit


The Role of an Auditor in Modern Society

Auditors are charged with the responsibility of expressing an opinion regarding the fairness and truth of financial statements. Nonetheless, not many people are able to appreciate the vital role played by auditors in the modern economy. In the absence of auditors however, the functioning of the modern corporate society, charged with the responsibility of producing most of the services and goods, could be hindered. Fraudulent restatements of earnings and financial reporting are becoming increasingly prevalent and for this reason, auditing (whether internal audits, government audits, or external audits) have gained importance. Because the modern day economy is full of corporate bankruptcies, regulators and investors alike demands that organizations provide them with accurate financial reports. Corporate accounting statements are very important because they provide a true picture of a firm’s financial situation, in addition to showing how the firm in question has managed to finance its operations, be it in the long-term, or short-term. In this case, the role of an auditor is to scrutinize the financial data of a company and ensure that there is accuracy and regulatory compliance. Therefore, an auditoir is a compoliance and accounting specialsit who sifts through the financial stareemnts and internal controsl of a firm. Auditors undertake detailed reviews of corporate mechanism and controls, in eefct seeing to it that the departmental heads closely monitors the operating risks associated with their respective business units. Read More


Auditing

Parmalat is a multinational company operating in the food processing industry. The company was founded in 1961 in Italy. The company collapsed in 2003. Prior to its collapse, Parmalat was the leading international company in the production of ultra high-temperature (UHT) milk. Currently, Parmalat’s global presence is in Europe, Australia, North America, China, South Africa and Latin America. The company is a subsidiary of Lactalis, French Group Company. The main products manufactured by the company include UHT milk and milk derivatives such as yoghurt, ice cream and butter. The company has a total of 140 production centres. There are more than 36,000 employees. Parmalat is a public company whose shares are listed on the BorsaItaliana stock market. Read More