Audit Overview
The term audit is derived from the latin word 'Audire' which means to hear.In earlier days, an auditor used to listen to the accounts read over by an accountant in order to check them. In the converse manner the Auditor reports the status of Financial Statements through his Audit Report thereby meaning that the users hear the status of financial statements through auditor. An Audit is an independent examination of financial information of any entity , whether profit oriented or not, irrespective of its size or legal form,with a view to express an opinion thereon.(Definition of ICAI). As per the defination of R.K. Mautz," Auditing is being concerned with the verification of accounting data with deterring the accuracy and reliability of accounting statements and reports" Once the financial statements are prepared by the management ,it is necessary to check whether or not such statements fairly reflect the position of the entity. The process of such examin...
