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Audit – a process & Audit report – an authentic document
The term ‘audit’ has its origin from the Latin word ‘audire’ meaning thereby ‘hear’. In medieval Latin, it developed as ‘auditus (compoti)’ meaning ‘audit (of an account)’. The word ‘auditor’ in Latin means the ‘hearer’.
In the present day context, the term Auditing refers to a systematic and independent examination of books, accounts, documents and vouchers of an organization to ascertain how far the financial statements present a true and fair view of the concern.
Audits provide third party assurance to various stakeholders that the subject matter is free from material misstatement. There are various kinds of audit depends on requirements of entities and stake holders. Statutory Audits – Those audits required as per certain law of the nation. Examples: Audit under Joint Stock Companies Act, Audit under Taxation laws, Audit under Banking Regulations etc. Non Statutory Audits – Other than Statutory Audits – not under the requirements of law. Examples: Management Audit, Internal Audit, Revenue Audit, Operational Audit, Forensic Audit. Even some of these types of audits are now classified under certain statute. For instance, in India internal audit of limited companies currently made as requirement under the new Company Act, 2013.
The basic concept of Audit as earlier stated is to express an independent opinion on the financial performance, internal controls, utilization of fund, compliance of legal requirements so on and so forth. The scope, reporting and other requirements of audit vary from one audit to another. There are certain set of standards of auditing in place. Governments set up authorities/bodies to regulate auditing function. For example in US, The Institute of Certified Public Accountants; In India, The Institute of Chartered Accountants of India, In UK, The Institute of Chartered Accountants of England and Wales etc. regulates the function of auditing in respective countries.
Audits provide third party assurance to various stakeholders that the subject matter is free from material misstatement. There are various kinds of audit depends on requirements of entities and stake holders. Statutory Audits – Those audits required as per certain law of the nation. Examples: Audit under Joint Stock Companies Act, Audit under Taxation laws, Audit under Banking Regulations etc. Non Statutory Audits – Other than Statutory Audits – not under the requirements of law. Examples: Management Audit, Internal Audit, Revenue Audit, Operational Audit, Forensic Audit. Even some of these types of audits are now classified under certain statute. For instance, in India internal audit of limited companies currently made as requirement under the new Company Act, 2013.
The basic concept of Audit as earlier stated is to express an independent opinion on the financial performance, internal controls, utilization of fund, compliance of legal requirements so on and so forth. The scope, reporting and other requirements of audit vary from one audit to another. There are certain set of standards of auditing in place. Governments set up authorities/bodies to regulate auditing function. For example in US, The Institute of Certified Public Accountants; In India, The Institute of Chartered Accountants of India, In UK, The Institute of Chartered Accountants of England and Wales etc. regulates the function of auditing in respective countries.
Our Team
VXJC is a team of professionals of repute with world class competencies adopting cutting edge technologies, possessing expertise, capable of taking care of audit function. Having gained adequate knowledge in various Standards on Auditing, Internal Audit Standards, Accounting Standards, International Financial Reporting Standards (IFRS), our well equipped team of professionals places the audit reports, a document of authenticity and decision making charter. VXJC’s in house training modules and continuous evaluation process places each VXJC professional in a world class position.