What is Auditing?

Auditing is defined as independent examination of financial statements with a view of expressing an opinion as to whether financial statements present true and fair view.

Financial statements are considered to present true and fair view if:
1. Financial statements does not contain material misstatements;
2. Financial statements have been prepared in accordance with the applicable financial reporting framework i.e. IASs, IFRSs, IPSASs etc.
3. Financial statements have been prepared in accoedance with the local laws and regulations i.e. Company laws, Tax laws etc

Auditing must be carried by an independent person i.e. person who is free from conflict of interest with client business.

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