Audit in Private and Public Sector
Audit in private and public sector
* Research problem
Private companies have lack of confidence, since they are not sure for property of financial records. Procedures and numbers of company are not reviewed regularly. Most importantly, internal controls are getting poorer, and reliability of financial statements is not attaining progress. In addition, errors on tax payment are influencing the yearly activity of company. All these pitfalls happen as result of ignores of annual audit. Many transactions happen during a year in bank account of private companies. The bank sees all these transaction; however, the responsible body for the money is board members. The main responsibility is to control whether or not funds are used appropriately. Therefore, financial records should be audited regularly.
* Purpose of research
The research will increase the awareness of financial makers within private companies. Through interviews private companies will see determine what is lacking their companies. Annual tax control by Administration of Taxes is resulting on high amounts of punishment. This happens as result of lack of importance for external and internal control. The effort of research will be seen in changing the current managing method existing in companies. Annual audit expenses take place within companies’ expenses, rather than leaving the biggest place to marketing expenses of company. Not the last but the least, the audit companies will invest to increase the communication with private companies, in order to contribute in proper and right annual financial statements.
* Significance of research
The audit will determine the need for internal control in company, which increase reliability of financial system in company. The audit contributes to close the financial year properly, and start with a new year. All the misuses of funds and mismanagement of financial system are covered primarily by audit. Most importantly audit prevents issues of
* Research problem
Private companies have lack of confidence, since they are not sure for property of financial records. Procedures and numbers of company are not reviewed regularly. Most importantly, internal controls are getting poorer, and reliability of financial statements is not attaining progress. In addition, errors on tax payment are influencing the yearly activity of company. All these pitfalls happen as result of ignores of annual audit. Many transactions happen during a year in bank account of private companies. The bank sees all these transaction; however, the responsible body for the money is board members. The main responsibility is to control whether or not funds are used appropriately. Therefore, financial records should be audited regularly.
* Purpose of research
The research will increase the awareness of financial makers within private companies. Through interviews private companies will see determine what is lacking their companies. Annual tax control by Administration of Taxes is resulting on high amounts of punishment. This happens as result of lack of importance for external and internal control. The effort of research will be seen in changing the current managing method existing in companies. Annual audit expenses take place within companies’ expenses, rather than leaving the biggest place to marketing expenses of company. Not the last but the least, the audit companies will invest to increase the communication with private companies, in order to contribute in proper and right annual financial statements.
* Significance of research
The audit will determine the need for internal control in company, which increase reliability of financial system in company. The audit contributes to close the financial year properly, and start with a new year. All the misuses of funds and mismanagement of financial system are covered primarily by audit. Most importantly audit prevents issues of
References: * Office of General Auditor in Kosovo, Independent Agency, February 2013 * Administration of Taxes in Kosovo, Public Institution, March 2013 * “M&K” Company, Accountant and Audit Services, February 2013 * “Dili Commerce:” Company, Instruction Services, February 2013