It has been pointed out that an audit originally confined to ascertain whether the accounting party had properly accounted for all receipt & payments o be half his principal, was in fact merely a cash audit. But the object of the modern audit, although it includes the examination of cash transaction its ultimate aim the verification of the financial position disclosed by the balance sheet and the profit and loss or revenue account of the undertaking.
It must not be inferred from the above definition that the whole duty of auditor is to compare balance sheet and accounts with the books in order to see that they agree therewith. He must do this but the must also by the exercise of reasonable skill and diligence, satisfy himself that the books themselves contain a proper record of the transaction entered into. This will involve a more or less complete examination of the whole of the transaction of the business and the manner in which they are recorded.
The nature of auditing is such that, the auditor will later on appear in his capacity as a critic of book-keepers work,may have a great morale effect and thus prevent a cashier or book-keeper from embezzling money.This morale effect has prevented theft in many cases and is a more powerful point in favour of auditing.
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J. Donald Warren has written: 'Handbook of Accounting and Auditing' 'Continuous auditing' -- subject(s): Auditing, Internal, Internal Auditing
Vivian R. V. Cooper has written: 'Manual of auditing' -- subject(s): Auditing 'Student's manual of auditing' -- subject(s): Auditing
auditing is a review process,usually of accounting procedures
What is Auditing practices and methodology of firms?"
Auditing begins where Accountancy ends.
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Central Auditing Organization was created in 1942.
The Auditing Standards Board (ASB) of the AICPA issued ten new auditing standards in 1988.
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Auditing is the examination and evaluation of financial statements to check financial accuracy.