Audit conduct over vendors
BrandsMart does regular audit on appointed vendors as well as new vendors.It is conducted in regular intervals as three, six and one year to ensure the buyer that vendor follows the system recommended and process approved. The general definition of an audit is an evaluation of a person, organization, system, process, project or product. Audits are performed to ascertain the validity and reliability of information; also to provide an assessment of a system’s internal control.
The goal of an audit is to express an opinion on the person / organization/system (etc) in question, under evaluation based on work done on a test basis. Continuous auditing is the application of automated tools to provide assurance on financial and non-financial such as planning, production, capacity utilization, rejection level, quality assurance data within a company. Simply put, continuous auditing uses a set of tools to check whether a company’s information is handled correctly and if internal controls are functioning to prevent errors and fraud. The “continuous” aspect of continuous auditing and reporting refers to the near real-time capability for financial & production information to be checked and shared.
Not only does it indicate that the integrity of information can be evaluated at any given point of time, it also means that the information is verified constantly for errors or fraud. Each instance of continuous auditing has its own pulse. The interval management chooses for evaluation depends on the frequency of updates within the accounting information systems.
Analysis of the data may be performed hourly, daily, weekly, monthly, etc. depending on the application. Demand for continuous auditing has come from a variety of sources, primarily user-driven requirements. External disclosure, internal drivers, laws and regulation, and technology all play important roles in pushing up demand.
