MVP SAMAJ’S K.R.T. ARTS, B.H. COMMERCE & A.M.

SCIENCE COLLEGE
(KTHM), NASHIK 02
“DEPARTMENT OF COMMERCE”
ASSIGNMENT
STUDENT NAME : GIRASE RUTUJA MAHENDRASING
CLASS : TYBCOM
DIVISION : E
SUBJECT : Auditing
ROLL NO. : 819
YEAR : 2021-22
SUBJECT TEACHER : Prof. Gavale sir

SIGNATURE
 AUDITING
INTRODUCTION OF AUDING
• The audit is an intelligent and critical examination of the books of
accounts of the business.
• Auditing, in the general sense, is the examination of the books of accounts
or a business concern by an independent person called the auditor.
• The work of an auditor begins on completing the accounting
process.Hence, auditing is a post-mortem analysis of the books of
accounts.
• Auditing is a mathematics and accuracy examination of financial
statements. Financial statement audit, energy efficiency audit, e-mail log

audit, environment audit, etc.

 AUDITING
DEFINATION OF AUDITING
• Auditing means the scrutiny of accounts books and the relative
documentary evidence by an independent qualified person in order to
ascertain the accuracy of the figures appearing therein.
The International Auditing Practices Committee
• The independent examination of financial information of any entity,
whether profit orgiented or not and irrespective of size, or legal form,
when
such an examination is conducted with a view to expressing an opinion
thereon.
 AUDITING
NATURE OF AUDITING

EXAMINATION COMPARISON VERIFICATION CONFIRMATION OPINION

 OBJECTIVE OF AUDITING

PRIMARY SECONDARY
OBJECTIVE OBJECTIVE

1. Ensuring the Accuracy of the 1. Control Effects on Accounts

Annual Accounts.
2. Make Sure that the
Accounts are kept as per the
Rules.
Departments staff.
2 . Satisfying Government Officials.
3 . Detecting fraud, embezzlement
In accoumt.
4. Help with future policy making.
6 Findings Errors in Accounting.
7 curbing fraud, embezzlement.
 IMPORTANCE OF AUDITING

Understands the true Defects and shortcomings in the

accounting system can be
nature of business reflected
Mistakes in accounting are Capital Raising Assistance
noticed and mistakes are Compensation is easy to
made get
Official Evidence Increases business
Availability of necessary reputation
information Valuing the assets of a
business entity
It is possible to get a loan
investors
 AUDITING

ADVANTAGES OF AUDITING
• Help in raising capital or getting loan
• Convenient for tax assessment
• Mistakes and scams are curbed
• Directors regularly receive audited statements
• Potential investors confidence
• Stakeholder interests
• Harmony among partners
• Understands the actual financial condition of the business
• The books of accounts remain up to date
THANK YOU!