Q. Define Auditing?
Auditing A business in quest of a loan or attempting to have its securities traded on a stock exchange typically must provide financial statements to support its request. Customers of a company's financial statements are surer that the company is presenting its statements fairly when a CPA has audited the statements. Therefore that companies hire CPA firms to conduct examinations independent audits of their accounting and related records. Self-governing auditors of the CPA firm check some of the company's records by contacting external sources. For instance the accountant may perhaps contact a bank to verify the cash balances of the client. After completing a company audit an independent auditors give an independent auditor's opinion or report. For an illustration of an auditor's opinion see The Limited Inc. This report declares whether the company's financial statements fairly equitably report the economic performance and financial condition of the business. An auditors within a business as well conduct audits, which aren't independent audits. At present auditing standards are established by the Public Company Accounting Oversight Board.