09 April 2009
auditing is nothing but ensuring as to whether all the receipts, expenses, assets and liabilities of the comapny are recorded in a proper manner. And, if those are recorded in a proper, then,the presentatin of data should be done as prescribed in law. Its auditing. Its a process. First, you must see all the book entries in a year. Then, you must see as to whether the book entries are supported by documentary proof to the extent possible. Auditing in a simple sense checking as to whetehr the book entries are supported by documentary proof. Then, after presenting the checked information in the given form, you need to see as to whether the company has violated any of the provisions of law. If it is so, the same is to be disclosed as per Auditing and Assuracne Standards. An auditor must be good at provisions of company law, the auditing standards and auditing and assurane standards. If you get comprehensive understanding of as to what is auditing, then, its very very easy. But, you need assistants and patience and the company must co-operate with you. If you can't command the comapny for the required information, then, you may get fixed like the auditors in satyam case. One must be careful. Ok. If there is any further doubt, please let me know and I will try to tell you something. If I am wrong, please correct me.
CAclubindia
