18 Apr 2018

Audit

Finance feed by:

CA Akash Agarwal
B.com (Hons),CA
CA in Practice    •    100% (2 votes)   •    14 Year 4 Month  experience

Audit is the examination or inspection of various books of accounts by an auditor followed by physical checking of inventory to make sure that all departments are following documented system of recording transactions. It is done to ascertain the accuracy of financial statements provided by the organisation.

Audit can be done internally by employees or heads of a particular department and externally by an outside firm or an independent auditor. The idea is to check and verify the accounts by an independent authority to ensure that all books of accounts are done in a fair manner and there is no misrepresentation or fraud that is being conducted.

Who can perform an audit? In India, Chartered Accountants certified from The Institute of Chartered Accountants of India (ICAI) can do independent audits of any organisation. CPA or Certified Public Accountant conducts audits in USA.

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