It is a logical and scientific procedure to examine the accounts of an organization for their accuracy.
Three party Relationships: Auditing is done on the behalf of shareholders with the assistance of management by the auditors. Audit is a systematic and scientific examination of the books of accounts of a business; 2. Regardless of size or type of operation, all companies can benefit from having an audit committee to help with corporate governance strategies and, ultimately, provide the best chance to ensure the organization's success.
Systematic process: Auditing is a systematic and scientific process that follows a sequence of activities, which are logical, structured, and organized. It is an important process to the company itself, the government, the investors, creditors, shareholder etc. Audit is a critical review of the system of accounting and … Audit is a verification of the results shown by the profit and loss account and the state of affairs as shown by the balance sheet. Audit is undertaken by an independent person or body of persons who are duly qualified for the job. 3. 4. There are rules and procedures to follow.
The essential features of an audit can be described as follows: Features of an Audit. The essential features of Auditing are explained below; Systematic process; Auditing is a systematic and scientific process that follows a sequence of activities, which are logical, structured, and organized. The essential features of auditing (as per ICWAI, India) are: 1. making a critical review of the system and procedures in an organisation; 2. making such tests and enquiries into the results as well as the operation of such systems and procedures, as the auditor may consider necessary to form an opinion; Auditing is the process of inspecting the books of accounts to authenticate their accuracy and reliability.
There are mainly six features of auditing which are Systematic Process: Auditing requires the systematic approach of activities that should be logical, organized and structured.
Characteristics of an Effective Audit Committee. Three-party relationship; The audit process involves three parties, that is, shareholders, managers, and auditors.
They all rely on audited accounts to make important decisions.
Three party relationships: The audit process involves three parties, that is, shareholders, managers, and the auditors. Subject matter FEATURES OF AUDITING: 1. Features of an Audit Auditing is a systematic process.