The Meaning and Definition of Auditing
'Audit' is derived from the Latin word 'audire,' which means
'to hear.' In early days, one had to listen to an accountant read over the
accounts for verification. He was known as the auditor.
The purpose of an audit is to determine the reliability and
validity of the information. Detecting and preventing future errors/frauds by
examining books of accounts, vouchers, and documents is the main function of
auditing. It protects the company's financial interests. In developed countries
like the USA, expatriate taxation can be a tricky matter. In this article,
Certified Public Accountant Jim Liggett CPA, will take a look at the importance
of an audit system to a company.
