Surely you at least once in your life have heard such words as revision or audit. Many people believe that these terms are nearly identical and serve the same purpose. However, the aforementioned concepts have basic differences that significantly separate them. So what is the difference between audit and revision.
What are audit and revision
An audit is an assessment of the company's activities from various angles:
- production;
- technical;
- design;
- energy;
- financial;
- resource.
Thus, there are several different areas of audit, each of which focuses on the assessment of a specific area of the enterprise. The audit is carried out by external specialized firms and regulatory bodies, whose employees must have professional education, as well as relevant work experience. Based on the results of the analysis, they draw up an auditor's report - the expressed opinion of the auditors after the audit, which is drawn up according to the established model.
The main purpose of the audit is to verify the legality of financial transactions carried out in the company, as well as their correct reflection on the accounting accounts.
An audit is part of a financial audit. It is carried out by independent regulatory bodies, as well as by the company's staff. Various forms of reporting, primary accounting documents, property, cash, securities are analyzed.
The audit, which is carried out by the company's own resources, makes it possible to identify and eliminate in the future the shortcomings that arise in the course of the employees' performance of their work. Such activities can improve the effectiveness of control within the enterprise.
Audit and revision: comparison
Thus, we can conclude that audit is a broader concept than audit. Its results are capable of influencing strategic decisions made by management - for example, changing the company's policy, attracting highly qualified specialists to work, introducing more modern energy saving technologies, as well as developing new projects.
The audit affects almost all areas of the company, and its results reflect the general state of the firm.
The audit, in turn, is distinguished by a narrowly focused action, since only the financial side is studied in it. Its results can be further used in making decisions about the company's obligations, property, and the development of financial policy. In addition, the conclusion of the audit allows you to eliminate errors that have arisen in the preparation of reporting and accounting.
What are the differences between audit and audit
Summing up, we can conclude that the difference between audit and revision is as follows:
Audit is a broader activity, and audit is only an integral part of it.
The audit is carried out only by external specialists, the audit can also be carried out by the company's employees, for example, commodity experts or accountants.
The audit results are not reflected in the audit report, while the audit results can be included in the audit report.
