what is audit

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Rajesh Agarwal

Rajesh Agarwal (Querist)
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10 May 2011 can any body tell me how can audit to a firm / bank
what r the things which we take care when audit

CS Bijoy

CS Bijoy (Expert)
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16 May 2011 Audit means checking and finding out the incorrectness of the company's accounts and in case of Banking also the same thing.

Purpose

The overall purpose of an audit function is to provide for verification of records, processes or functions in a sufficiently independent manner from the institution or subject being audited in order to add its value and improve its operations. The main objectives are:

To independently identify information which is essential to develop an overall picture of the institution/local authority.

To identify any weaknesses or administrative flows which otherwise would not be identified due to unwillingness or inability by insiders of the institutions.

To identify strengths and weaknesses of the administrative structures in order to inform decisions on overall strengthening of the institution.
So from the above points you can find the points to take special care.
To provide baselines on which reforms can be assessed.

To provide the government (other governing bodies) and general public with credible information that result in public faith or trust of the institution and/or pressure for any reforms to address problems identified.