What is audting

Is processing of determine all transactions of firms

Do you mean auditing? It is the process of inspection and review of books of accounts / process/ activity objectively by an Independent person. Traditionally it was done to ensure the accuracy of transaction. However, presently the scope of auditing has increased and it can be done to also ensure compliance.

Audit is the examination or inspection of various books of accounts by an auditor followed by physical checking of inventory to make sure that all departments are following documented system of recording transactions. It is done to ascertain the accuracy of financial statements provided by the organisation.

• There are three main types of audits: external audits, internal audits, and Internal Revenue Service (IRS) audits.