Continuing with the follow-up and theoretical line of my previous publications, the objective of any audit is to ensure that the recommendations included in the report are implemented. This will result in improvements in the levels of effectiveness, efficiency and economy in the auditee's management and a strengthening of its internal control system.
In this sense, the follow-up stage represents an activity whose essential function is to verify that the recommendations presented in the audit report are complied with, in addition to verifying their contribution to the company's efficiency.
The time required for this activity varies from one organization to another, since it depends on the nature of the function or fact evaluated, its importance and timeliness, as well as the willingness to verify what happened after the audit.
As an input in the auditing process, financial statements are the means prepared by management to report, externally or internally, on the financial effects generated in the company during a normal cycle of operations.
Financial statements or reports are commonly defined as the documents where the results of the operations or activities carried out by an economic entity, its financial situation and the changes experienced in this, at a given date, are shown in a structured and concrete manner, with the purpose of satisfying the information needs of the management and third parties interested in the company. These data can be used in the decision-making process.