5 Questions
Define the term 'audit' in your own words.
Audit refers to a systematic examination of the books and records of a business or organization to verify and report on the financial operations and results.
What is the origin of the word 'audit'?
The word 'audit' is derived from the Latin word 'audire', which means 'to hear'.
What is the nature or characteristics of auditing?
Auditing is a systematic process that follows a logical and structured sequence of activities. It involves a three-party relationship between shareholders, managers, and auditors. The subject matter of auditing is to provide assurance on a specific subject.
According to Montgomery, how does he define auditing?
Montgomery defines auditing as a systematic examination of the books and records of a business or organization to ascertain or verify and to report upon the facts regarding the financial operation and the result thereof.
What is the objective of auditing as per the definition given by ICAI?
The objective of auditing, as per the definition given by ICAI, is to provide a systematic, independent examination of financial records, irrespective of legal form, whether profit-oriented, with the objective to give an opinion on whether the financial statements present a true and fair view.
Test your knowledge on the history and meaning of auditing with this quiz! Explore the origins of auditing in ancient civilizations and its role in contemporary business practices. Challenge yourself with questions on the systematic examination of books and records, verification processes, and more.
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