Auditing | Meaning | Scope | Objective | Limitations | Audit | Classification Part-1 | B.Com | BBA |
Accounting MasterClass・2 minutes read
Pooja Singh introduces the concept of auditing, its origin, meaning, and qualifications required for auditors in India, highlighting the growth of the profession post-Industrial Revolution and the importance of accurate financial statements for businesses. Auditing is an investigation by an independent auditor to verify financial statements, ensuring their accuracy through evidence collection and cross-checking to prepare a report on the company's true financial position.
Insights
- The concept of auditing originated from the Latin word "audit," meaning to hear, see, verify, and investigate, highlighting the foundational principles of the practice.
- Auditing in India has a rich history, formalized in April 1914 under the Indian Company Act of 1913, leading to the growth of the accountancy profession and the establishment of regulatory bodies like the Institute of Chartered Accountants of India (ICAI).
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Recent questions
What is the origin of auditing?
Latin word "audit," meaning to hear, see, verify.
When did auditing formally begin in India?
April 1914 under the Indian Company Act of 1913.
What is the scope of audit?
Review of financial statements for accuracy.
What qualifications are required for an auditor in a company?
Detailed qualifications for auditors.
Why is auditing necessary post-Industrial Revolution?
Increased business activities and capital.
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