What is Auditing?

An Accounting inspection (auditing) is the field of accounting which aims to prevent about the fairness and appropriateness of the financial statements of the company, would have been in accordance with the applicable financial standards. Thus auditing is a process for obtaining objective and systematic way in assessing the evidence relating to the requirements regarding strict economic measures or events in order to ensure a level conformity between the assertive statements with the specified criteria and communicate the results to the user with an interest in the event.

Talking about auditing or understanding auditing (inspection), then the economic experts or practitioners have elaborate with a pressure varying sentences but the goal is the same, namely to check the feasibility of the financial statements in the company against the use of finances. In connection with the above, the following will be quoted some understanding/definition of auditing being propounded by the experts.

Auditing are:

"a systematic process to obtain and evaluate evidence objectively regarding statements about the activities and events of the economy with the aim to set degree of alignment of the regulations by criteria have been established, as well as the submission of the results to the user concerned ".

Based on this definition, that a systematic evaluation of the activities of acquiring and events that must be accomplished in accordance with processes and procedures at the level of the adjustment of rules or criteria that are already determined in advance.

The notion of auditing is the process that is by someone who is competent and independent so that it can gather and evaluate evidence regarding structural information from a unit effort to consider and report on the level of conformity of the information that the measurable criteria have been set.

With the base there are indications that in the process taken by the person must be independent and must gather and evaluate evidence of structural information of the business to be considered at the level of which should correspond to the information should be measurable and the criteria that have been set previously.

An auditing is the inspection carried out by a third party on the basis of the note accountants including analysis, testing (test). Confirmation and proof an other. Examination (audit) is defined as a review and investigation conducted by the public accountant is fundamental on internal control with the accounting records of a corporation or any other economic units before he gave the statement the opinion of accountants over the appropriateness of financial statements.

The sense of auditing is the verification of accounting data to determine precision and reliable or trustworthy financial reports presented by management.

This understanding to provide verification on accounting data in determining the accuracy of the financial reports are reliable or trustworthy by the general public for the need of corporate financial information presented in the report Finance.

An auditing is a process of accumulation and evaluating evidence that integrated evidence of that was done by people who are independent and competent concerning the information which can be calculated from one particular economic unity with the purpose to determine and report on the level of the relationship between the level of information that can be calculated from the criteria that has been set.

The definition of auditing - is the examination of the above administrative data on an enterprise undertaken with a view to examining the accuracy of data and information Administration and assess the feasibility and correctness of financial statements of companies that's still set.

The auditing is the accounting function is one which includes the research activity of the truth of the data/information in accounting which started in the financial statements and the assessment and analysis of the held data and accounting information are presented.

For an accountant, has the function of the checks is the seat that is free to give a statement against the feasibility of financial reports based on a generally accepted accounting principles, since data and information from the financial statements of the company there are the interconnections of its own in improving the accountability of the company, if the accounting data was correct.

Thus, it can be said that accounting is one part of an audit that is very lighted by the company to provide financial information, where accounting include how the collection and processing of data/ financial information that is important for later in the convey it in the form of the financial statements of the company which needs to be responded to.

To take financial decisions, so in accounting functions i.e. process data into useful information, allowing inspection of the accountant (auditing) basically had a form of analysis that is solved and outlines the information the one in the overview of the financial statements to find bookkeeping that supports the presentation of the financial report information.

Talking about inspection (auditing) of accounting, because accounting has a very important role in an enterprise where data on financial listed on it the required data and information must be equipped according to your needs.