Auditing implies the examination of books of accounts and related documents of an organization in order to correctly estimate their accuracy, completeness and regularity. Such an examination is carried out by a competent and unbiased person with the help of evidences, documents, information and explanations given to him.
What Is The Primary Objective Of Auditing?
The primary objective of auditing is to express an opinion on the true & fair view of the financial statements. In auditing & accounting, the main concern is to determine whether the recorded information appropriately reflects the economic events that occurred during the accounting period. The dominant principle of auditing is to examine the financial information produced by an accountable party & provide an assurance to the owners/shareholders of the company as to whether the information recorded by the accountable party is true & correct. The discovery of fraud & error are also part of the primary objective of auditing. When an entity whose accounts are being audited is target, greater reliance is to be placed on the accounting system / internal controls in use for the detection and prevention of errors and frauds. Hence due to such reliance on accounting system / internal controls the auditor opts for test-checking technique to ascertain whether the accounting system adopted is reliable.
Advantages of Auditing for a company
The advantages of auditing for a company are countless but to name a few are:
- Knowledge of the Actual Position of the Business :
Through an external audit the actual position of the business comes to light. The owners of the business are positively assured that the results being shown by the Profit and Loss Account and Balance Sheet are correct.
2) Detection of Frauds and Errors:
In the process of auditing the accounts of the company, the frauds and errors contained therein also come to light. This also reduces the chances & probability of frauds and errors being committed in the future.
3) Proper Valuation of Business:
If any company is to be sold, then a set of accounts that are audited prove out to be helpful in proper valuation of the business and the valuation of goodwill. In fact, audited accounts are considered more dependable than unaudited ones.
4) Increase in Goodwill:
Public puts greater trust in the accounts of those organizations who get their accounts audited & hold auditing as a paramount exercise this enhances the goodwill of the business. The increase in goodwill makes it very easy for the organization to obtain loans from banks and other financial institutions.
How can we at Oxford Auditing assist with you auditing?
We are a company having an experience of more than 10 Years & possess a set of skilled accountants & auditors who are qualified chartered accountants from ICAI. We have also worked across several industries such as:
- Insurance Brokers
- Glass & Aluminum
- Real Estate
- Interior Decoration
- Oil & Lubricants
At Oxford Auditing we hold our client satisfaction at the highest level & we are able to achieve this satisfaction through our continuous support & regular fulfillment of commitments.