Audit

Audit Means

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.

Main Objectives of an Audit

Opinion:

To express an opinion on the fairness and accuracy of financial statements.

Compliance:

To ensure adherence to laws, regulations, and internal policies.

Detection:

To detect errors, irregularities, and instances of fraud.

Assessing Controls:

To evaluate the effectiveness of internal control systems.

Recommendations:

To provide suggestions for improving processes and controls.

Auditing VS Acounting:

Aspect	Auditing	Accounting
Definition	An examination of financial records and statements to ensure accuracy and compliance.	The process of recording, summarizing, analyzing, and reporting financial transactions.
Focus	Verification and validation of financial information.	Recording and reporting of financial transactions.
Objective	To provide an independent opinion on the accuracy of financial statements.	To provide financial information for decision-making.
Scope	Primarily external, focused on financial statement auditing.	Internal and external, covering various aspects of financial management.

- COMMERCE KA LADKA