Introduction of Auditing
The word Audit is derived from the Latin word audire, which means to hear. Originally, it was customary for person responsible for maintenance of accounts go to some impartial and experienced persons, ordinarily judges who used to hear these accounts and express their opinion about their correctness or otherwise such persons were known as “Auditors”. Thus the term auditors mean literally hearer i.e., one who hears and is used ever since the days when public accounts were accepted and approved on the basis of hearing the accounts read.
Auditing is an important professional task carrying heavy responsibility and calling for commensurate skill and judgement. Keeping in view the definitions of various authors we may define the word Auditing as:
Auditing is an examination of the accounting books and the relative documentary evidence so that an auditor may be able to find out the accuracy of figures and may be able to make report on the balance sheet and other financial statements that have been prepared from there.
