Definition Of Auditing
The current era is the era of business explosion. Accounting is the language of business . Day-to-day operations will become complex and so will accounting transactions. An audit helps us achieve accuracy and reliability of accounting information.
In fact, due to the complexity of the accounting field of modern enterprises, there is a great demand for auditing to determine the reliability and accuracy of accounting transactions.
As a rule, man has limited knowledge. If the entrepreneur has no knowledge of accounting or the organization of the business becomes important... accounting requires the involvement of a third party. Audits to verify the accuracy of these registers maintained by third parties have been extended.
The word "audit" comes from the Latin word "audire". The Latin word "Audire" means "to hear". So, the word "check" means "hear".
In ancient times, an entrepreneur based the accounting books recorded by employees. He appointed an experienced and impartial person who listens to the account from the mouth of the accountant. An experienced person checked the accuracy of the compiled accounting books by listening. Hence the word "audit" appears.
Some experts audit…
Thus, an audit is the process of checking carefully prepared accounting documents by the employees of the organization to obtain the accuracy, reliability and completeness of the accounting records by an expert and impartial person or party. Auditors can be appointed internally or externally. It depends on the decision of the entrepreneur or the board of directors of the company.
In fact, due to the complexity of the accounting field of modern enterprises, there is a great demand for auditing to determine the reliability and accuracy of accounting transactions.
As a rule, man has limited knowledge. If the entrepreneur has no knowledge of accounting or the organization of the business becomes important... accounting requires the involvement of a third party. Audits to verify the accuracy of these registers maintained by third parties have been extended.
The word "audit" comes from the Latin word "audire". The Latin word "Audire" means "to hear". So, the word "check" means "hear".
In ancient times, an entrepreneur based the accounting books recorded by employees. He appointed an experienced and impartial person who listens to the account from the mouth of the accountant. An experienced person checked the accuracy of the compiled accounting books by listening. Hence the word "audit" appears.
Some experts audit…
AV Hanson states that "experimental verification of these documents establishes their reliability and the validity of statements taken from them."
Mautz states that "An audit is the examination of accounting information to determine the accuracy and reliability of accounting records and statements."
RR Comber states "an independent examination of the financial books and records of a particular person liable or indebted to others for the purpose of verifying the accounts of a report prepared by or for an accountant".
Thus, an audit is the process of checking carefully prepared accounting documents by the employees of the organization to obtain the accuracy, reliability and completeness of the accounting records by an expert and impartial person or party. Auditors can be appointed internally or externally. It depends on the decision of the entrepreneur or the board of directors of the company.
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