Firstly of all, we are going to answer the most important question:
What is an audit? Audit is a direction function in order to analyze and evaluate the internal control of companies to guarantee the assets, the veracity of the information and one efficacy management of the firm.
In otherswords, is a comprehensive exam about the companies structures (targets, methods, control, their operation form and their management board and equipments).
“A formal and systematic vision in order to know if the firm is complying with the organizational target and identify target to employ” said Manuel Montes Ferrandez (expert in auditory who works in Deloitte). Montes Ferrandez, Manuel (2007):“Auditing, tax and other requirements”. Madrid
In auditing spirit types:
Depending on their application, first group of authors divide between financial and operational auditing and some others prefer to talk about 3 types: outside, inside and government auditing.
PWC (international firm) in their regulation and ideal thinking, explain the most important auditing functions: PWC (2007): “Types ofaudit” Magazine Emprendores (Spain). 2007/02
• The information auditing can be checked.
• If it a problem exists between auditors and administrator (people who work in a company which is being audited), the auditors examine and assess the administrator’s statement, because the administrators can hide the truth for their interest.
• A good inside control can decrease the errorprobability in a firm.
The auditing is a very important report for a firm, because it can help to take a future decision but just some companies need to make a report, so, we are going to explain when must a company make a report?:
Some reasons can be the next ones:
• LEGISLATIVE CHANGE:
The legislative change of the economic environment is less foreseeable, because itsubstitutes a legal situation by another uncertain situation.
The organization’s privatizations change their orientation, provoking a change between bureaucratic model and another model whose idea is the client service.
If there is an abolishment of legal barriers, it obligates to open more frontiers to the international market.
• MARKET FLUCTUATION:
The economic cycle requires to adoptdistinctive strategies, so, to change their orientation. The new technologies can turn enterprise obsolete and they must adapt themselves.
The search of new professionals provokes to change the structure of the company, so in some cases a report to analyze the composition is needed.
Inside – Outsides Reasons:
It needs to make a report between the initial and final targetsin order to valuate the capacity management and analyze the competitive position.
a) Reorganize an enterprise:
It can be because of various reasons: weakening the directive team, property change in a firm, strategic changes or new products.
b) Offer public holder:
The success in a takeover is based in its market growth. The auditory publicity can be interesting for the buyers, because itannounces the competitive advantage and worker’s ability.
II) Which are the minimum requirements demands for Europe Organization?
The audit had not an appropriate regulator development until a few time ago. In the past, was not a necessary audit because worked a few big firms and was more frequent to find family companies and they had not to make a report because was an irrelevantinformation.
In the last years, it have been necessary the economics development, it growing in relations international economics and it appearing complex problems to utilize the audit which it helped to offer a beneficial service for firms and thirds persons.
In 60s-70s years the international firms start to appear in Europe, so, foreign investor demanded that companies had to audit, this fact...