1. Addressing Audit Queries
Businesses must respond to auditor questions and clarifications to ensure transparency and compliance.
- Purpose: Helps resolve audit findings, discrepancies, and compliance concerns.
- Documentation Review: Companies must provide supporting records and explanations for audit adjustments.
- Regulatory Compliance: Ensures businesses meet legal and financial reporting standards.
2. Audit Adjustments
Companies must post necessary journal entries resulting from audit findings.
- Correction Entries: Businesses must adjust misclassified transactions, accruals, and provisions.
- Financial Accuracy: Proper adjustments ensure correct financial reporting and compliance.
- Audit Trail Maintenance: Companies must document all changes made during the audit process.
3. Implementation of Recommendations
Businesses must implement improvements suggested in the audit report.
- Process Enhancements: Companies must refine internal controls, financial reporting, and risk management.
- Compliance Strengthening: Businesses must align policies with audit recommendations and regulatory updates.
- Ongoing Monitoring: Companies should conduct regular reviews to maintain compliance and efficiency.