M.V.P.

SAMAJ, NASHIK
K.R.T. ARTS, B.H. COMMERCE AND A. M. SCIENCE COLLEGE, NASHIK-2
DEPARTMENT OF COMMERCE
ACADEMIC YEAR 20 /20

Assignments
Name : Siddhant Ganesh Khajure
Name of Teacher : Prof. Gavale sir
Class : T. Y. Bcom
Division : E
Roll Number : 841
Semester : V
Subject : Auditing
Mobile Number : 9307736065

Teachers Signature : Submission Date :

 AUDITING

INTRODUCTION OF AUDING
 The audit is an intelligent and critical examination of the books of accounts
of the business.

 Auditing, in the general sense, is the examination of the books of accounts

or a business concern by an independent person called the auditor.

 The work of an auditor begins on completing the accounting process.

Hence, auditing is a post-mortem analysis of the books of accounts.

 Auditing is a mathematics and accuracy examination of financial

statements. Financial statement audit, energy efficiency audit, e-mail log
audit, environment audit, etc.
 AUDITING

DEFINATION OF AUDITING

 Auditing means the scrutiny of accounts books and the relative

documentary evidence by an independent qualified person in order to
ascertain the accuracy of the figures appearing therein.

 The International Auditing Practices Committee

“ The independent examination of financial information of any entity,

whether profit orgiented or not and irrespective of size, or legal form, when
such an examination is conducted with a view to expressing an opinion
thereon.”
 AUDITING

NATURE OF AUDITING

EXAMINATION COMPARISON VERIFICATION CONFIRMATION OPINION

 AUDITING

OBJECTIVE OF AUDITING

PRIMARY SECONDARY
OBJECTIVE OBJECTIVE

1. Ensuring the Accuracy 1. Control Effects on Accounts

of the Annual Accounts. Departments staff.
2. Make Sure that the 2. Satisfying Government Officials.
Accounts are kept as 3. Findings Errors in Accounting.
per the Rules. 4. Detecting fraud, embezzlement in
accounts.
5. Help with future policy making.
6. curbing fraud, embezzlement.
 AUDITING
IMPORTANCE OF AUDITING

Understands the true Defects and shortcomings in the

nature of business accounting system can be reflected

Mistakes in accounting are Capital Raising Assistance

noticed and mistakes are made
Compensation is easy to get
Official Evidence
Increases business
Availability of necessary reputation
information
Valuing the assets of a
It is possible to get a loan business entity

Various professional associations investors

 AUDITING
ADVANTAGES OF AUDITING
 Help in raising capital or getting loan
 Convenient for tax assessment
 Mistakes and scams are curbed
 Directors regularly receive audited statements
 Potential investors confidence
 Stakeholder interests
 Harmony among partners
 Understands the actual financial condition of the business
 The books of accounts remain up to date
THANK YOU!