Financial Education - Internal audit process and the analysis and interpretation of financial statements

According to what was stated in the last article, whatever the economic nature of the organization, it is imperative to implement an adequate quality control in the internal audit process that favors the analysis and interpretation of the financial statements.

This will allow managers to be properly informed for decision making, facilitating the implementation of different policies, standards and/or procedures to be followed in a given period, as well as to focus on solving the problems that afflict the company.

However, some entities have not considered quality control in auditing processes as an effective strategy to optimize the processes of their commercial, mercantile and financial operations.

These cases are evidenced in guided visits by senior management, through informal interviews directed to the administrative management for internal audits and the analysis and interpretation of financial statements.

As well as to the accounting management team of the aforementioned entity, there have been weaknesses directly related to the analysis and interpretation of the financial statements, which hinders the process of making timely financial decisions.