The purpose of auditing is to satisfy the users of financial statements that the accounts presented to them are drawn up on correct accounting principles together with Accounting Standards/ IAS and that they represent a true and fair view of the state of affairs of the organization. This is possibly one of the most important functions of a CA where specialized training, skill and judgment are required.

Audits are required  of Public/Private Limited companies in the Manufacturing/ Trading/ Service sectors, IT Companies, nationalized banks, financial institutions, non-banking finance companies, public sector undertaking (PSU), Charitable institutions, NGO, Hotels, Hospitals, Cooperative Societies and other small and medium sized enterprises.

All companies that are not required to have audited financial statements must have their financial statements independently reviewed.

The focal point is to ensure strong internal & managerial control systems to minimize the risk of accidental or deliberate errors and omissions. Apart from, safeguarding of valuable assets, sufficient division of authority over key control areas and stringent compliance with the internal operating policies and corporate governance.

• Planning an efficient and effective audit approach by defining the objectives and scope, preparing the programs and scheduling the resources.
• Obtaining the documenting evidence that the audit area is adequately controlled and the operations are effective and efficient by using appropriate audit techniques.
• Evaluating the strengths and weaknesses of audit areas and reporting their efficiency, effectiveness and state of control by analyzing the audit evidence.
• Presenting a report of findings, conclusions and recommendations to inform the management of the adequacy of controls and effectiveness of operations.
• Assessing the action taken by the management regarding follow-up and reporting techniques.
• Adhering to the norms of ethics and professional standards to ensure quality and consistency of audit work.