The term Business is defined as an enterprise or agency or legal firm intends to commercial activity which provides provision of goods and/or services to consumers to earn profit. Businesses are prevalent as capitalist economies, in which most of them are privately owned or limited enterprise. A business firm or company provides goods and services to customers in exchange for other things, entities, or money. Due to the commercial relations managed within a business, payroll service maintains the records of its employees’ salaries & wages, bounces and withheld taxes.
Accounting and auditing are treated as peers in a business company, which hold the tax filing, tax returns, bookkeeping services, tax consultant, auditing & assurance services and business accounting etc. Bookkeeping service includes the recording of financial transactions which further includes purchasing, selling, receipts and payments by Business Company or firm. Several accounting firms and auditing companies provide the facility of account management and audit services to an economical firm. Certified public accountant (CPA) firms serves as business consultant and public attestation & auditing opinions on financial statements.
Auditing refers to examination of books, accounts, documents & vouchers in systematic way to ascertain about the validity & reliability of financial statement presentation to cross check whether the financial statements are fair or not of an economical firm or company. Any subject or matter can be audited. Auditors may be an external auditor or cost auditor.
Internal Auditing refers to an independent and disciplined approach to evaluate & to improve the risk management, controls over governance processes. An Internal auditor may work for a government agency, public traded companies or non-profited companies.
Income tax audit is the examination of a business or an individual tax return by Internal Revenue Service (IRS) or state tax authority. An external auditor performs an audit, in accordance with specific laws and rules, of the financial statements of a company, government organization, other legal entity, or organization. It is independent of the entity being audited. There are several professional service firms which serve their facility of auditing, account consultants, planning & management of an audit, tax advice, assurance, small business services and many more to assess and evaluate the financial statements and maintain tax returns and files.