What is Auditing?
Auditing is a critical process of examination of books of accounts, statutory records, documents, and vouchers of an organisation to ensure the true and fair presentation of financial as well as non-financial disclosures. Auditing aims to provide assurance about the accuracy and reliability of financial as well as other data of an organisation. However, auditing focuses more on fair and true data representation rather than arithmetical accuracy. Auditing also ensures that accounts and other statements have been prepared in accordance with the relevant laws and accounting standards.
Auditing is considered important to maintain transparency, accountability, and reliability in an organisation’s financial reporting to withhold the trust of the stakeholders. Auditing is conducted by an independent professional known as ‘Auditor’, on the basis of documents and vouchers as a piece of evidence. Auditors have to follow and comply with the set of standards and regulations established by the International Auditing and Assurance Standards Board (IAASB) and the Public Company Accounting Oversight Board (PCAOB).
Table of Content
- Purpose of Auditing
- Importance of Auditing
- Types of Audit
- Frequently Asked Questions (FAQs)