Question

What do you think the budget execution phase entails?

What do you think is the purpose of audits and how important do you think they are?

Answer 1

To implement the budget as formulated and authorized with as little distortion as possible, but to adapt to changing circumstances (e.g. genuinely unexpected events) by amending the budget as necessary during the year to ensure that budgetary changes are made with due consideration of the legal process during the year, after careful consideration of the facts, transparently and in a manner which promotes them. To provide a way to achieve the macroeconomic objectives

Creating it is the first phase of the budget process. Done right, this process begins at ground level with careful thought. How much revenue is required and what new initiatives should be taken into consideration. While the process of political budgeting is a bit messy, one of its underlying principles for your business is very meaningful. Budgets on a yes or no basis are not approved. Rather, they are the subject of discussion. While the political process can sometimes distort budget priorities, it is not important for companies to fall prey to the issue. Alternatively, the approval process may provide you with an opportunity to step back and take another look at how your organization is spending its funds.

Auditing is an impartial review of an entity's financial statements, whether or not profit-oriented, regardless of their size or legal nature, when such an analysis is carried out in order to express an opinion on it. Due to the following factors, auditing is mandatory. Management can provide general accounting process consistency. This discourages workers from committing fraud as it works against them as a moral test. Bankers will rely on audited records when making loan applicants ' credit worthiness decisions. Even after the loan has been provided, the borrower's audited financial statements help lenders to judge their funds ' recoverability.

Audited financial statements improve entity-earned income measurement accuracy, thus helping to assess income tax.
We get a real picture of the profit earned or loss suffered over the duration for the owners. In the case of litigation, audited financial statements lead to the resolution of claims. The audited financial statements help the insurer to settle the claim in the event of loss or damage to property by fire, theft etc. The prospective investors can devise expected profit trends to decide whether to invest in the entity or not based on audited financial statements from past years.