Advantages of Auditing It is compulsory for all the organizations registered under the companies act must be audited.

There are advantages in auditing the accounts even when there is no legal obligation for doing so. Some of the advantages are listed below: 1. Audited accounts are readily accepted in Government authorities like income Tax Dept., Sales Tax dept.,Land Revenue departments, banks etc. 2. By auditing the accounts Errors and frauds can be detected and rectified in time. 3. Audited accounts carry greater authority than the accounts which have not been audited. 4. For obtaining loan from financial institutions like Banks, LIC, HUDCO, HDFC, IFCI etc., previous years audited accounts evaluated for determining the capability of returning the loan. 5. Regular audit of account create fear among the employees in the accounts department and exercise a great moral influence on clients staff thereby restraining them from commit frauds and errors. 6. Audited accounts facilitate settlement of claims on the retirement/death of a partner. 7. In the event of loss of property by fire or on happening of the event insured against, Audited accounts help in the early settlement of claims from the insurance company. 8. In case of joint Stock Company where ownership is separated from management,audit of accounts ensure the shareholders that accounts have been properly maintained, funds are utilized for the right purpose and the management have not taken any undue advantage of their position. 9. To determine the value of the business in the event of purchase or sales of the business, audited account will be the treated as the base for the evaluation. 10. The audit of accounts by a qualified auditor also help the management to understand the financial position of the business and also it will help the management to take decision on various matters like report in internal control system of the organization or setting up of an internal audit department etc. 11. If the accounts have been audited by an independent person, disputes between the management and labor unions on payment of bonus and higher wages can be settled amicably. 12. In the event of admission of a new partner, audited accounts will facilitate the formation of terms and conditions for joining the new partner. Last 3 years audited accounts and balance sheet will give a general idea about the growth and financial position of the business to the new partner. Auditing is beneficial for business. The auditing determines the efficiency of employees. The trained and qualified management is an asset for any business. Such management can play dynamic role in framing and implementing the policies. Auditing is essential for business. Theaudited accounts are helpful to settle the dispute. The audited accounts become the basis of making decisions. The

dispute may relate to infringement of patents or trade marks. Auditing is helpful for business. The audited accounts present true and fair view of business activities. The facts and figures can be used to prepare budgets and estimate for the next years. The projected cash receipts and payments, income statement and balance sheet can be prepared. Auditing is helpful for business. The auditor can point out the weakness of internal control system. The business management can take steps to remove these weaknesses. The effective internal control system is essential for large scale business enterprise. Auditing is helpful for business. The auditor can make the detail study to find the reasons of fluctuation in profit. There are various reasons for charges in profits. The auditor can determine the true cause of such changes.
Introduction: Accounting system is a chain of activities in an entity by which transactions are processed for maintaining financial record. An assessment of ledgers, journals, bank accounts, sales invoices, purchase vouchers, and expense accounts." Auditor goes on to point out that the audit process and seeking information and assistance from organization workers. Also an auditing procedure that inspects accounting observes constantly during the year. Incessant audits are usually skill driven and intended to automate error checking and data proof in real time. An audit is essential because for public listed companies it is important that an audit is approved out to guarantee that the companies are using fair policies prescribed by law and the public's money is in safe hands. Below is articulated the advantage and disadvantage of external audit, 01. Advantages: The vital advantage of an audit is that it makes it easier to compare diverse companies as the auditors articulate their judgments about the equality of measures. Of a company is given a good judgment then it means that it is follow the law. It also assists in following positive values. An audit will remain the managers from frustrating to pamper in deceptive performs as it is a resources of responsibility. It confirm to dependability and honesty of the consequences. 01. Disadvantages: The only disadvantage of an audit can be the expenses concerned because you have to pay the auditors and also guarantee that you preserve comprehensive records of all the interactions which engage a lot of expenses. 02. Advantages: the external audit is essential if the internal auditor is unfaithful to the organization then the external auditor can verify the accounts of the company to identify whether the company has fair and true accounts or there are some unfair and false accounts are there so this is the grounds the company assigns the external for the company.

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02. Disadvantages: External examines contributors may be secluded from the relaxed networks of the organization, putting them at a weakness when navigate the surroundings. External service providers do not offer a systematic internal recruiting ground for future senior managers. 03. Advantages: Audit that the owner will be contented about the business operations and working of its various subdivisions 03. Disadvantages: The education curve for external examine providers can be steep. An insufficient considerate of the organization may gravely obstruct the service provider's helpfulness. 04. Advantages: The errors whether committed unknowingly or consciously are exposed by the process of audit and its attendance prevents their occurrence in the future. No one will try to commit an error or fraud as the accounts are subject to audit and hence they will have a fear of being detected. 04. Disadvantages: Discretion might be violated if external individuals have access to susceptible in rank.

he important features of our audit approach include:

Global audit methodology and documentation approach: our methodology, approach and knowledge and technology tools enable our professionals to deliver a consistent, high-quality audit anywhere in the world. Excellence in audit execution: to train our teams to appropriately apply our audit methodology and tools, we have developed an intensive client-by-client training approach that we call "Audit Quality". Commitment to quality and controls: the responsibility for the quality of our audits rests with each of our audit partners and every member of our client teams. Their personal commitment to compliance with the highest professional ethics, standards and our firms quality controls is the foundation of our commitment to professional excellence.

05. Advantages: Auditing is very practical in attaining the sovereign opinion of the auditor about business condition. If the accounts are audited by a sovereign auditor, the report of the auditor will be true and fair in all respects and it will be of tremendous importance for the management of the company. 05. Disadvantages: A significant potential disadvantage of the private audit firms is the fact that an Auditor General may have more experience in auditing public sector organizations and may therefore have an audit approach that is more in line with the different objectives and values that govern these. The operations of the organizations continue to be more similar to those of national public 06. Advantages: The procedure of audit will institute a check on the minds of the staff working in the business and they will not be able to commit any abnormality, as they will have a fear and will also be aware that the accounts will be examined in the near future and that action would be taken against them if any wrongdoing is exposed. Thus the audit prevents the happening of any wrongdoing before it starts and the staff hence becomes more active and accountable. The fear of their getting jammed act as a moral check on the staff of the company. 06. Disadvantages: As appealing also private sector auditors to bid would likely augment the number of bids received and the diversity between these, the evaluation and selection process would become longer and possibly more complex both for the secretariat and for the Finance Committee, which may be considered a disadvantage. Conclusion: Various actions of external auditor's some cases mutual support can be more proficient. When an organization has subsidiaries around the world, the two sets of auditors could institute a shared program of visits to the operating units to ease the burden of visiting all the entities. Internal auditors could perform intermittent or annual register reviews that external auditors could also use, thereby saving an organization external audit fees. Of course, the internal auditing contribution to the partnership must be credible for the external auditor to rely on this work.