Audit

What is audit?

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Audit is the examination or inspection of various books of accounts, statutory records, documents and vouchers of an organizationto asscertain by an auditor followed by physical checking of inventory to make sure that all departments are following documented system of recording transaction. It is done to ascertain the accuracy of financial statements provided by the organisation.

Why audit is need for companies?

  • It is mandatory for all types of companies
  • Lenders or creditors taken decisions based on the audited financial statement of a company.
  • The review of financial of statements should be counducted by a commerce expert having CA/CPA qualification.
  • Storng audit abolishes the chances of any fraud or financial misuse in business

What do not auditors do?

  • Look at the every transaction carried out by the organisation.
  • Audit other information provided to members of the organisation.
  • Test the capability of all of the organisation’s interal controls.

What can not auditors do?

  • Predict the future
  • Be there all the time.