WHAT IS AUDITING?

The audit of a business is defined as a thorough analysis of the financial health of an organization – as mentioned in the annual report by someone independent of the respective organization. In other words, it refers to a more organised and independent scrutiny of the books, accounts, business documents and vouchers of an organization to determine the authenticity and validity of the financial statement of the organization. In addition, the process also aims to ensure an ubiquitous phenomenon in the corporate and the public sector that academics started identifying an "Audit Society". 

The respective auditor understands the propositions before him/her for analysis, procures evidence, evaluates the same, and generates an opinion on the basis of his analysis which is conveyed in the form of his audit report.