Auditing

The term audit derived from the latin word "Audire" which means "to hear". In the middle ages, the auditor was a person appointed by the owner whenever they suspected fraud to checks account and to hear explanations given by persons responsible for financial transaction. Nowadays, auditing is the verification of accounting data with a view to report on the reliability of the accounting statement. An auditor is an independent person who checks the books of accounting.

The auditing is related to the following facts;

1. An examination of books of accounts.
2. An examination of books of account whether the results presented by profit and loss and financial position presented by balance sheet are true and fair or not.
3. Preparation of audit report.