Meaning og Auditing Auditing means verification of accounting data and determining the accuracy and reliability of accounting statements and accounting reports. Audit is the independent examination of financial information of a entity and examine the profit and loss of business and examination of books accounts and vouchers of the business.
Some main steps involved in auditing . The role of auditor and his terms of engagement which are decided between client and auditor. Auditor testing the accuracy of records. Theauditor everything evidence in spot of transaction in a The auditor very fine every elements of balance sheet and profit and loss account.
Characteristics of auditing 1. Qualified person: only a qualified person having a degree of Chartered Accountant with certificate of from ICAI having . Background. 2. Independence: the auditor should work independently that is he should be unbiased in his approach and his judgement is not subordinate to wishes of another person 3. Systematic way: financial statement in a proper and systematic manner to give true and fair view.
5. Financial statements: auditors guides his opinion on financial statements including profit and loss account balance sheet and notes to 6. Client: auditor has its legal status he can be so proprietorship, partnership firm, company trust, etc. 7. True and fair view: the duty of auditor to detect and frauds and guide true and fair views and prevent the errors and frauds
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