What is Auditing

Audit means check of the accounts at the end of the year after preparation of accountancy. An auditor must have knowledge of accounting. When any person goes in company for auditing then they must have a technical knowledge of audit. An audit is just like a watchdog of the company. As dog always think about the owner of the house as it the same way auditor always think about the owner of the company.

Auditing is a vital part of accounting. Traditionally, audits were mainly associated with gaining information about financial systems and the financial records of a company or a business (see financial audit). However, recent auditing has begun to include non-financial subject areas, such as safety, security, information systems performance, and environmental concerns.

Definition of Auditing:

    “Auditing is a systematic and independent examination of data, statements, records, operations and performance (financial or otherwise) of an enterprize for a stated purpose. In any auditing situation, the auditor perceives and recognizes the propositions before him for examination, collects evidence, evaluates the same and on this basis, formulates his judgment which is communicated through his audit report.”