Introduction to auditing

What is auditing? Definitely, you would think about it if you are into accounts. To put it simply, auditing is a process of examining the organizations or individual financial records to determine the accuracy of accounting for the year. Auditing basically is a proper subject which you study and do practically in charted accountancy. When you are doing charted accountancy you have to do articles for approximately for 5 or 6 years, in these years you learn each and everything about accountancy and will be able to handle all the accounts situations.

Most of the charted accountancy firms provide this facility to the internees for the enhancement of their future. The person who audits the specific firm of company is called auditor. In Dubai, there are higher authorities that maintain the auditing standards for the registered public firms. It’s not just a subject but you have to make a proper plan for the auditing and The Public company oversight board makes plans for the auditing for the charted accountant companies. Private firms, public firms and industries hire these charted accountant companies for the yearly audit; some companies get the facility for the quarterly audit. And some hire for the half yearly audit. These companies are those firms which have to show their profit and loss account after 3 months of after 6 months. And audit of the companies determine the yearly tax for the companies. Charted accountants provide these facilities to the firms in who are doing business in UAE. But most of the accounting firms do not provide such facility to the clients because they have to look other clients.

Here are some objectives of audit for those companies hire the charted accountant companies .

Principal Objectives:

 Well the principal or main objectives of the auditing are determine the specific things like:

  • To analyze that what is the internal system of the company and how it is working.
  • What is the authenticity and correction of the transaction which company has made for year?
  • Examine the accuracy of the accounts, balancing, casting etc.
  • Finalize the value of liabilities and assets for the year.
  • Examine the financial ratios whether it is correct or not?

Subsidiary Objectives:

It is also known as secondary objectives of auditing which will help you to learn more about primary objectives.

  • Find the errors and preventing them
  • Find the frauds and overcome the frauds
  • Stock valuation.