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September 21, 2007, Newsletter Issue #45: Auditing Accounting
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Tip of the Week
According to the Department of Labor, there is a higher than average growth rate expected in the auditing accounting field. This is due to recent accounting scandals, new Federal legislation (such as the Sarbanes-Oxley Act) and increased scrutiny of company finances.
Auditing accounting requires specialized and advanced skills and training. In order to perform auditing, one must understand accounting - both in theory and in practice. Accounting involves the proper recording of transactions. GAAP (Generally Accepted Accounting Procedures) needs to be followed.
Auditing these transactions involves monitoring and testing to ascertain compliance with rules and regulations. GAAS (Generally Accepted Auditing Standards) needs to be followed. One needs to also be competent with Sarbanes-Oxley (SOX) compliance. Only at this advanced level of knowledge and expertise is auditing accounting possible.
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