Audit process

Question

What do you mean by the term audit process? Briefly explain it.

Answer 1

The term Audit is a derivative of the term Audition that signifies to hear. In prior times, the Kings employed to hear their accountants narrate the accounts orally. Though, as the complexity of accounting function grew, requirement was felt to methodically check the accounts for errors misclassified and document the findings in a written form and hence it can be employed by the Management, investors, stakeholders, Government and different other bodies. This procedure is termed as Auditing or Audit.