What exactly is Auditing of Accounts please?

Answer 1

Auditors came about when shareholders of a company want to ensure that the financial reports they get or presented to the public are true and fair. They hired someone to check the books and write a report if there are any abnormalies.

However, as Accounting Standards becomes more and more complicated, Auditors need to have specialised knowledge of accountancy. Today, almost all auditors are accountancy trained but they don't only check on financial records. They also check to see if company adheres to standards to maintain product quality, follows Information System procedures and even ISO standards.

Answer 2

Someone called an Auditor checks the accounts of a firm or business and if everything is in order they then 'sign' them off.
The EU auditors have not signed off the EU accounts for the past 12 years or so.
As the auditors do not give the 'right' answer they are sacked and replaced.
...And the accounts still are not in order..and so they still dont get signed off.

Answer 3

properly accounting is the recording of monetary transactions. on a on a regular basis foundation, each monetary transaction is recorded in accordance of a sequence of regulations recognize as often ordinary accounting concepts or GAAP. collectively, those transactions get summarized and are available to style the monetary statements that are used internally for determination making, and externally, to shareholders and traders and lenders an so forth. ok, so who's in charge for ensuing that GAAP is being observed, surprisingly in a publically traded employer with shares that commerce on a inventory substitute?? properly the employer of direction, however the employer is had to have their books audited with the help of an exterior independant auditor who examines the accounting archives, on a attempt foundation, and gathers sufficient and appropiate evidence as a manner to style an OPINION to despite if GAAP is being observed. The auditor will then launch his expert OPINION to despite if the accounting archives are properly reporting the monetary activities. it rather is it in a nutshell. it rather is exterior auditing. An inner auditor usually works with the administration of the employer and style of snoops around, attempting to locate human beings goofing off and so on so the managers can improve performance, yet it rather is somewhat a thoroughly diverse style of auditing.

Answer 4

auditing of accounts is where the accounts processes and paperwork/records are checked to ensure they meet regulations. it is used to identify potential fraud activity and bad business practices.

Answer 5

is it not for makeing sure there is no fraud going on