etc. the above audit is mainly conducted by the banks own staff or external auditor.However, the rules and the regulation relating to the conduct of various types of audit or inspections differ from a bank to bank expect the statutory audit for which the RBIguidelines is applicable. In this, I have given more importance on the overall bank auditsystem. In today’s competitive world audit is very much necessary as well ascompulsory , because investor investing decision is depend on that particular concept if auditor has expressing his view about particular organization is true and fair theninvestor can get his ideas about how much he should invest in particular companies.
ORIGIN AND EVOLUATION OF AUDITING1)Origin of term :
The term audit is derived from the Latin term “audire” mean to hear. In earlydays, an auditor used to listing to the account read out by the accountant in order tocheck them.
2)Ancient origin :
Auditing is as old as accounting. It was in use in all ancient countries such asMesopotamia, Egypt, Greece, Rome, U.K., and India. The Vedas,Ramayana,Mahabharata contain references to accounting and auditing. Arthashasastra byKautilya gives detailed rules for accounting and auditing of public finances. TheMauryas, the Guptas and the Mughals had developed and accounting and auditingsystem to control state finances. Thus, basically, accounting and auditing had their origin in the need for the government to control the income and expenditure of the