Test Your Knowledge of Auditing

Auditing: A Systematic and Independent Examination of Books, Accounts, Documents, and Vouchers of an Organization

• Auditing is an independent examination of financial information of any entity, whether profit-oriented or not, irrespective of its size or legal form, conducted to express an opinion thereon.
• Auditing provides third-party assurance to various stakeholders that the subject matter is free from material misstatement.
• Auditing is applied to a wide range of areas, including secretarial and compliance, internal controls, quality management, project management, water management, and energy conservation.
• The most important duty of the auditor is to detect fraud.
• Financial audits also assess whether a business or corporation adheres to legal duties as well as other applicable statutory customs and regulations.
• A statutory audit is a legally required review of the accuracy of a company's or government's financial statements and records.
• Due to constraints, an audit seeks to provide only reasonable assurance that the statements are free from material error.
• Audits of publicly traded companies in the US are governed by rules laid down by the Public Company Accounting Oversight Board.
• Performance audit refers to an independent examination of a program, function, operation, or the management systems and procedures of a governmental or non-profit entity to assess whether the entity is achieving economy, efficiency, and effectiveness in the employment of available resources.
• Quality audits are performed to verify conformance to standards through review of objective evidence.
• A project audit provides an opportunity to uncover issues, concerns, and challenges encountered during the project lifecycle.
• An energy audit is an inspection, survey, and analysis of energy flows for energy conservation in a building, process, or system to reduce the amount of energy input into the system without negatively affecting the output(s).