What is Auditing? Definition and Purpose Financial auditing is the process of examining an organization’s (or individual’s) financial records to determine if they are accurate and in accordance with applicable rules, including accepted accounting standards, regulations, and laws. This critical process serves multiple stakeholders, including investors, lenders, regulatory agencies, and management teams. The primary purpose of auditing is to provide an independent, objective assessment of ... The primary purpose of the audit is to confirm the authenticity of books of accounts prepared by an accountant. In this post, we will cover Auditing introduction, definitions, and functions. It is well known saying that “where the function of accountant ends, audit begins to determine the true and fair picture of such accounts.” Auditing Some typical stages in the audit process An audit is an "independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form when such an examination is conducted with a view to express an opinion thereon." [1] Auditing also attempts to ensure that the books of accounts are properly maintained by such entities as required by law. Auditors consider the propositions before them, obtain evidence, roll forward prior year working ... Types of Auditing Internal Audit An internal audit is one that is conducted within the organization by its own employees and stakeholders. It is conducted for accessing the effectiveness of internal processes, reviewing financial information, and ensuring whether a business is complying itself with proposed laws and regulations. Internal audit is termed as a first checkpoint for every organization to check the authenticity of their book of accounts, operational processes, security protocols ...
