Scribd
Upload
24 views2 pages

AUDITING

Auditing originated in Italy with Luca Paciolo's introduction of the double entry system in 1494. In India, auditing is defined as a systematic examination of financial data to evaluate accuracy and fairness, with significant developments including the Indian Companies Act of 1913 and the Chartered Accountant Act of 1939. Key regulations include qualifications for auditors and the requirement for special resolutions for auditor appointments.

Uploaded by

sserugo dodovic
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
24 views2 pages

AUDITING

Auditing originated in Italy with Luca Paciolo's introduction of the double entry system in 1494. In India, auditing is defined as a systematic examination of financial data to evaluate accuracy and fairness, with significant developments including the Indian Companies Act of 1913 and the Chartered Accountant Act of 1939. Key regulations include qualifications for auditors and the requirement for special resolutions for auditor appointments.

Uploaded by

sserugo dodovic
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Auditing - Introduction

The origin of auditing can be traced to Italy. Around the year 1494, Luca Paciolo introduced the
double entry system of bookkeeping and described the duties and responsibilities of an Auditor.
Auditing in India has been described in different ways −
“Auditing is a systematic and independent examination of data, statements, records, operations
and performances (financial or otherwise) of an enterprise for a stated purpose. In any auditing
situation, the Auditor perceives and recognizes the propositions before him for examination,
collects evidence, evaluates the same and on this basis, formulates his judgment which is
communicated through his audit report.”
- The Institute of Chartered Accountant of India

Another definition goes as such −


“Auditing is an intelligent and critical scrutiny of books of accounts of a business with the
documents and vouchers from which they have been written up, for the purpose of ascertaining
whether the working results of a particular period as shown by Profit and Loss Account and also
the financial position as reflected in the Balance-sheet are truly and fairly determined and
presented by those responsible for their compilation.”
- J. R. Batliboi

Auditing in India

Let us now understand the growth of auditing in India. The Indian Companies Act, 1913,
prescribed for the first time the qualifications of an Auditor. The Government of Bombay was the
first to conduct related courses of study such as the Government Diploma in Accountancy
(GDA).
The Auditor’s Certificate Rule was passed in 1932 to maintain uniform standard in Accountancy
and Auditing. The Chartered Accountant Act was enacted by the Parliament of India in 1939.
The Act regulates that a person can be authorized to audit only when he qualifies in the
examinations conducted by The Institute of Chartered Accountants of India.
Following are a few other points related to Auditing in India −
 Members of Institute of Cost and Works Accountant of India are authorized to conduct
cost audit according to Section 233-B of the Companies Act, 1956.
 Companies Act 1931 was replaced by Companies Act 1956.
 An Auditor can be appointed only by a special resolution as per section 224 The
Companies (amendment) Act, 1974.

You might also like