Types of Company Audits
The term audit is derived from the Latin term ‘audire,’ which means to hear. Auditing is as old as accounting and there are signs of its existence in all ancient cultures such as Mesopotamia, Greece, Egypt. Rome, U.K. and India. The Companies Act, 2013 has detailed provisions regarding this. This Act provides provisions regarding compulsory Statutory Audit of companies, Auditor appointment, Auditor disqualifications, Cost Audit, appointment of cost auditors, government audit, special audit etc.
Institute of Chartered Accountants of India (ICAI) defines Auditing as- Auditing is defined as a systematic and independent examination of data, statements, records, operations and performance of an enterprise for a stated purpose. In any auditing situation, the auditor perceives and recognizes the propositions before him for examination, collect evidence, evaluates the same and on this basis formulates his judgement which is communicated through his audit report”.