Auditing

Auditing Divyajyoti Chauhan

AUDITING 

Auditing is a process of collection and evaluation of evidence for the purpose of reporting on economic information

ORIGIN 

Audit is derived from Latin word

AUDIRE 

Means to

HEAR

Definition 

Auditing is a systematic examination of the books & records of a business organisation in order to ascertain or verify and report upon facts regarding its financial operations and results thereof.

Scope of auditing 

   

To determine whether the relevant information is properly disclose or not. Carrying out test & enquires Evaluating results To determine fairness & authenticity of financial reports Covers all aspects of organisation.

Objectives of auditng 

Main objectives  Expression

of expert opinion

Secondary objectives 

Detection & prevention of 

Errors 

Clerical errors 



  



Error of omission  Partial omission  Complete omission Error of commission

Error of principal Compensating errors Errors of duplication

Frauds   

Embezzlement of cash Misappropriation of goods, accounts Fraudulent manipulation

Specific objects  

Operational audit Performance of management policy.