Audit refers to the independent examination of the subject matter to ensure adherence to the purpose for the subject is created or established or is developed . Audit is a proactive procedure undertaken to relieve the concerned from the aftermath that would be inevitable had the adverse event occurred .
Usually people mistake Audit to mean just the financial Audit but it can actually be done before everything crucial for the success of an entity , be it the technological audit , be it the Operational Audit , the Management Audit , the Information System Audit and many more alike.
The most crucial of all is the Financial Audit which is the independent examination of Financial Statements of Entities to confirm the accuracy and authenticity of Accounts . It not only safeguards the company from the deviations from the planned course of action but also is important for all the stakeholders involved .
As per the Institute of Chartered Accountants of India :- Audit refers to " An independent examination of financial information of any entity , whether profit oriented or not , and irrespective of its size or legal form , when such an examination is conducted to express an opinion thereon "
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