Accounting Financial Analysis Report

This report discusses the importance of shared document folder, internal and external audit, and time stamping documents in accounting and financial analysis. It also explains the difference between internal and external audit and the importance of continuous audit.

Running head: ACCOUNTING FINANCIAL ANALYSIS REPORT
Accounting Financial Analysis Report
Name of the Student:
Name of the University:
Authors Note:

ACCOUNTING FINANCIAL ANALYSIS REPORT
Contents
Contents...........................................................................................................................................1
Answer 1:.........................................................................................................................................2
Answer 2:.........................................................................................................................................3
Answer 3:.........................................................................................................................................4
References:......................................................................................................................................5

ACCOUNTING FINANCIAL ANALYSIS REPORT
Answer 1:
Shared document folder is used in audits by the qualified auditors and accountants to conduct
audits effectively. The important components of shared document folder include following:
Document included in the folder are accessible to the authorized persons only:
The documents included in the shared document folder are accessible to those who have been
authorized only. Unauthorized persons are not allowed access to the shared document and make
any alternation to the data and information in any of these documents.
Important documents:
The documents included in the shared folder are important to the audit of an organization. Thus,
it is important to ensure that the shared document folder is shared with those responsible to
conduct the audit.
Security:
The security of the folder is of utmost importance as it contains important document integral to
the audit of an organization. Except authorized persons and auditors no should be allowed access
to the folders.
Modification and changes:
The shared document folder is not allowed to be modified without the permission of the
authorized person and auditors (Menkus, 2016).
Availability:

ACCOUNTING FINANCIAL ANALYSIS REPORT
The shared document folder must be available to the auditor and shared among the audit team
members to ensure that each and every one authorized is allowed to use the information from the
document to conduct the audit effectively.
Answer 2:
Internal and external audit are entirely different from one another. Thus, the tasks undertaken by
the internal and external auditors are significantly different from one another due to the different
objectives that the two audits are trying to achieve. It is important to know the difference
between the two evaluate the performance of internal and external auditors (Singh, Woodliff,
Sultana & Newby, 2018).
Internal audit tasks include evaluating effectiveness of risk management processes, internal
controls and governance processes within an organization whereas external auditing is all about
conducting an independent verification of financial statements of an organization. The tasks of
internal audit are conducted with the objective of improving internal controls, effectiveness of
governance processes and strengthening the risk management processes. The tasks of external
auditing on the other hand are conducted with the objective of expressing an independent opinion
on the financial statements of an organization (Mehmeti, 2018).
Continuous audit are done by internal auditors and not by external auditors. Internal auditing
department is responsible to conduct continuous audit. Since the objectives of internal audit and
continuous audit are similar hence, internal auditors do not face significant trouble in conducting
the continuous audit for an organization. The objective behind conducting continuous audit is to
improve the effectiveness and efficiency of internal controls and management procedures within
an organization. Thus, those who are conducting the continuous audit are not independent to the

ACCOUNTING FINANCIAL ANALYSIS REPORT
organization rather they are working for the organization. Thus, only internal auditors can take
the responsibility of conducting continuous audit for an organization. External auditors are
independent from an organization and is not to be considered for continuous audit.
Answer 3:
Importance of time stamping documents is to protect the document from unauthorized access and
manipulation. Time stamping document helps to protect data included in a file. Time stamping
documents help in keeping the file in its original form.
Changing documents creates lot of trouble in an audit thus, it is important to take all necessary
steps to ensure that the documents are not changed. Protecting documents from unauthorized
changes is possible with the help of strict authentication and identification procedure within an
organization. The components include use of strong password and user ids to improve the
internal controls to protect documents from unauthorized access and changes (Armitage, 2017).
Since, the auditors are often allowed to make changes in documents thus, auditors should use
their initials in the documents where changes have been made. Along with that, necessary
notations shall be made by the auditor to keep a track of the changes made by him. Use of initials
by the auditors should be unique to make the auditors accountable for any changes made by
them. Thus, use of initials will help improving the accountability in the process of auditing and
specifically to the changes made in the documents. In addition notations made by the auditor of
any changes made by them shall help them to track the changes if any made by them in the
documents for the purpose of auditing. These are two important components of an audit to
improve the efficiency and effectiveness of audit procedures (Eulerich & Ratzinger-Sakel, 2018).

ACCOUNTING FINANCIAL ANALYSIS REPORT
References:
Armitage, J. (2017). Changes in the importance of topics in auditing education: 2000‐
2005. Managerial Auditing Journal, 25(11), 935-959. doi: 10.1108/02686900810908463
Eulerich, M., & Ratzinger-Sakel, N. (2018). How Assurance- and Advisory-Related Purposes of
Internal Auditing Influence the Cooperation With the External Auditor Empirical Evidence
From Two Perspectives: Internal and External Auditors. SSRN Electronic Journal, 1(1), 18-
31. doi: 10.2139/ssrn.3150063
Mehmeti, F. (2018). Common Characteristics and Differences in External and Internal
Auditing. European Journal Of Economics And Business Studies, 4(1), 261-267. doi:
10.2478/ejes-2018-0030
Menkus, B. (2016). How an “audit trail” aids in maintaining information integrity…as illustrated
in retailing. Computers & Security, 11(4), 111-116. doi: 10.1016/0167-4048(90)90082-5
Singh, H., Woodliff, D., Sultana, N., & Newby, R. (2018). Additional Evidence on the
Relationship between an Internal Audit Function and External Audit Fees in
Australia. International Journal Of Auditing, 21(3), 27-39. doi: 10.1111/ijau.12009