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Definition of Auditing
According to International Standard on Auditing (ISA) objective and common principles governing an audit of financial statements, the purpose of a financial statements audit is to allow the auditor to state an opinion whether the financial statements are ready, in all material respects, in accordance with a recognized financial reporting framework.
The phrases employed to state the auditor’s opinion is “give a true and fair vision” or “present moderately, in all substance respects,” that are equivalent terms. A similar objective exerts to the audit of financial or other information arranged in accordance with suitable criteria.
The independent examination of an expression of opinion on, the financial statements of an endeavour by an appointed auditor in pursuance of that appointment and in compliance with any related statutory compulsion.
In previous times, the Kings used to hear their accountants narrate the accounts verbally. Though, as the complexity of the accounting function grew, require was felt to thoroughly
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With internal audit we always require to be careful of any manipulations within the company itself. Errors and frauds within the company cannot be denied /overlooked at any cost.
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