Accounting is important for a company in order to keep track of all of its financial transactions and activities and auditing is necessary in order to make sure that those accounts are certified and accurate. Read more: General Ledger Difference Between Accounting And Bookkeeping
The rules and regulations of audit and accounting have been laid out in the Comptroller and Auditor General of India. It ensures that auditors follow the best practice of conducting the process and all the accounting principles while doing so are followed. Read more: Silent Partner
The purpose of auditing is to make sure that the information recorded in the financial report of the company is accurate and reflects the actual financial position of that company at any given date. It is also important to certify that the accounts are prepared according to the principles of accounting. Read more: Variable Cost
The audit of a company is done by the Statutory Auditor who has been appointed in the Annual General Meeting of the company. Only a chartered accountant who holds a valid certificate of practice can become the auditor of a company. Read more: Operating Profit
An audit is a must for all the registered companies and it is required to be done by all private limited companies and also proprietorships if their annual income exceeds Rs. 1 Crore. Read more: Sole Proprietorship