Definition of Auditing

Auditing is the systematic, independent examination of an organisation's books of account, vouchers, and other financial records by a qualified person (the auditor) so as to express an opinion on whether the financial statements give a true and fair view of the organisation's state of affairs.

Several widely used ideas run through most standard definitions of auditing:

• It is systematic and scientific — carried out by following an established procedure, not a random spot-check.
• It is independent — the auditor must have no personal interest in the outcome of the examination.
• It involves critical examination of books, accounts, and supporting vouchers, not a mere glance.
• Its purpose is to enable the auditor to express an opinion — typically that the accounts show a "true and fair view" — not to prepare the accounts themselves.