Audit from Lat Audit — listening or audit

Audit (from Lat. Audit - listening) or audit - procedure for an independent evaluation of the organization, system, process, project or product. Most often the term is used in relation to the verification of the financial statements of organizations for the purpose of expressing an opinion about its reliability.

In XX century the audit was divided into 2 groups: Financial / Investment audit; Industrial Audit.

Financial and investment audit Financial - this is the audit in the classical sense, that is checking the financial statements and to express an opinion about its reliability. Closely related to him and investment audit - conclusion of targeted and effective use of investment resources and audit of professional participants of investment activities (exchanges, investment and construction companies). It is also close to the financial audit adjacent auditing activities and activities for inventory. Depending on whether you are reporting an audit by an independent auditor or the company's own employees, to distinguish between independent (audit in the classical sense) and internal audit.

Industrial Audit Industrial audits more complex phenomenon because it includes elements of financial (in terms of cost of goods, confirm the validity of tariffs for services - for example, housing services) and purely technical audit.

Audit staff. Audit Staff - definition, assessment of personal potential of staff and relevant staff of corporate culture and values of the company. In the course of the audit level is set to the relevant staff that office, the estimated personality traits, given the complex characteristics of employees.

Audit history Etymologically, the word "audit" comes from the Latin. audio - «I hear. " The need for the audit is supposed to have originated at the same time with the birth and development of barter and monetary relations. The oldest evidence of the audit are to China around 700 BC. e. It is believed that China is his motherland. Development of the audit was closely connected with the peculiarities of financial and industrial history of individual countries and determined, above all, the nature of the capital market development. In the Middle Ages in European trading cities at the request of merchants, contractors (usually other merchants or banking institutions), auditors checked the ledgers of merchants and showed their validity. In the XIX century became the main customers of the audit, in addition to creditors, owners of companies - due to the active development of joint stock and limited companies in which the owners have not engaged in the current management and therefore require periodic inspection hired managers. Globalization of the economy, the creation of transnational corporations with lots of units, often scattered across the country and even around the world have greatly increased business needs in an independent auditor. In addition, the growth of state intervention in the economy and the complexity of the tax system, the company began to experience a need for independent professionals who can verify accounting and tax reporting companies to identify reporting errors and distortions and prevent the sanctions from the state authorities.