External Auditing
External Auditing
Offering efficient External Audit Services processing and billing services, ensuring seamless transactions and accurate invoicing to support your business operations.
Maintaining Fiscal Transparency and Accountability
There are three main important roles as to why external auditing is important: keeping financial statements accurate, compliant, and reliable. At Accounting Hunter, we offer external auditing services to help your organization meet its financial objectives and adhere to regulations.
What is External Auditing?
External auditing involves examining financial statements by an independent third party. Unlike internal audits, external auditors ensure compliance and unbiased assessments of financial data.
Why External Auditing is Important
Ensures Financial Accuracy: Verifies the true state of financial data.
Builds Stakeholder Confidence: Reassures investors and partners.
Improves Legal Efficiency: Ensures compliance with regulations.
Prevents Fraud: Detects discrepancies and embezzlements.
Reduces Costs: Identifies system weaknesses and cost-saving opportunities.
Key Inventory Management Techniques
1 Just-In-Time (JIT) Inventory Management:
JIT is a system of purchasing where inventory is ordered and received just before it is needed in the production process.
- Minimizes storage costs.
- Reduces waste and obsolescence.
2 ABC Analysis:
ABC analysis categorizes inventory into three groups: A items (high-value, low-quantity), B items (moderate value and quantity), and C items (low-value, high-quantity).
- Focuses attention on the most valuable inventory items.
- Helps allocate resources effectively.
3 FIFO and LIFO:
FIFO: First-In, First-Out ensures that the oldest stock is sold first, ideal for perishable goods. LIFO: Last-In, First-Out sells the most recently acquired inventory first, suitable for industries with fluctuating inventory costs.
4 Safety Stock and Reorder Point:
Safety stock is additional inventory to avoid running out during delays or demand spikes. Reorder Point: The inventory level indicating when to reorder.
Reorder Point Calculation:
Reorder Point = (Average Daily Usage × Lead Time) + Safety Stock
5 Economic Order Quantity (EOQ):
EOQ is a model used to determine the ideal order quantity that minimizes total inventory costs, including ordering and holding costs.
Who Needs External Auditing?
Public Companies
Mandatory to maintain and provide to shareholders and other related authorities to improve compliance.
Private Companies
Important for financing and to gain confidence in stakeholders.
Nonprofit Organizations
Helps ensure proper use of funds and accurate financial statements.
Government Entities
Ensures public confidence and justifies actions taken by the organization.
Advantages of Selecting Accounting Hunter for Auditing
Independent and Objective Analysis
We provide a clear, unbiased financial picture as an independent third party.
Expert and Qualified Auditors
Our team includes experienced specialists with diverse industry expertise.
Tailored Audit Approach
Flexible and specific to your organization’s requirements and nature.
Affordable and Efficient
Time-efficient processes without compromising quality, ensuring great value for money.
Steps of Performing the Auditing Process
Engagement & Planning
Discuss objectives and scope before starting the formal planning process.
Risk Assessment
Identify risk areas and construct an audit plan tailored to them.
Fieldwork & Testing
Examine documents either on-site or through virtual means.
Reporting
Deliver a comprehensive report detailing findings and recommendations.
Follow-Up
Ensure implementation of recommendations and resolve any outstanding issues.
