By Leanna Kelly Public companies are subject to all types of audits—especially when it comes to their financial record keeping. There are external audits of financial documents, as well as internal audits of the controls behind financial reporting. While the former involves external third-party accountants, an internal audit is performed by an entity’s own accountants. Together, they’re two sides of the same coin: one focused on transparency.
Internal audits became an important staple for public companies after the passage of the Sarbanes-Oxley Act of 2002. This piece of legislation holds managers legally responsible for the accuracy of a company’s financial statements. As a …read more
