Understanding Auditing

Auditing is the systematic examination of financial records, accounts, business transactions, and accounting practices to ensure accuracy, legality, and adherence to accepted accounting standards and principles.

The primary objective of auditing is to ensure the accuracy and reliability of financial information, while the secondary objectives include detection and prevention of fraud, ensuring compliance with laws and regulations, and providing credibility to financial statements.

The qualities of an auditor include integrity, objectivity, independence, competence, confidentiality, and professional skepticism.

<p>The basic principles governing an audit include integrity, objectivity, professional competence and due care, confidentiality, and professional behavior.</p> Signup and view all the answers

<p>The auditing profession evolved alongside standardized accountancy as a way to identify and prevent fraud. It has historical roots in ancient civilizations such as India (Kautilya’s Arthashastra), China, Egypt, Greek, and Roman, with the word 'audit' derived from the Latin word 'audire' which means to hear.</p> Signup and view all the answers