Introduction1492 Lucas Pacioli Double Entry System1844 Companies Act of England Preparation of Balance Sheet and its auditing got legal.1880 Institute of Chartered Accountants was found in England.From 1914 to 1932 obligatory on the part of every company incorporated under it to have the accounts audited at least once every year.1977 International Fedaration of Accountants (IFAC) International Auditing Practices Committee (IAPC).Institiute of Chartered Accountants of India (ICAI) is member of IFAC, it set up on it own an auditing practicing committee (APC) in 1982 developed Satandard Auditing Practices (SAPs) now renamed as Auditing and Assurance Standards (AAS) AAS 1 to AAS 35.Financial Statements;Profit / Loss A/c- Which indicates Profit earned or loss incurred during the particular financial year.Balance Sheet : Which shows postions of assests & liabilities at a particular dateCashFlow & Fund Flow statement : Which show movement of cash/fund during particular financial year.

Owner: For evaluating performance & profitablitiy of business.Mgmt For evaluating their own performanceFor making decision For judging tax liablilitiesFor estimating expected future outcomes.Lender& Creditor For judging creditworthiness of the entityFor Judging recoverability of their dues.Customer For determing general consisitency of the businessGovt For calculating direct tax, exciss duty, VAT etcEmpolyee Creat demand of bonus, For determining reasonableness of wages & salaries etcResearch For trends, for judging investment opportunities in the endBook-keeping , Accountancy and AuditingAccording to Kohler,The process of analyzing, classifying and recording transaction in accordance with a preconceived plan is called book-keeping.Accounting of business transactions in the books of original entry such as purchase book, sales book, sales return, purchase return, cash book, bills receivable, bill payable etcTo post in the ledger from the books of original entry.

AccountancyAccounting is the recording, classifying and summarizing of economic events, for the purpose of providing financial information used in decision making.Accountancy mainly consist of the following activitiesPreparing trial balance from book-keepingDoing adjustments at end of the accounting yearPreparing final accountsAuditing Audit form Greece word audire means to hear.Auditing is systematic and independent examination of accountancy and other underlying data and information to give an opinion in the audit report.AUDITORA Accounting & otherU UnderlyingD Data and I InformationT To give anO Opinion in R the audit reportSystematic carry the audit as per laid down procedure and guidelines.Independent Auditior should act unbiased.Auditing is determining whether recorded information properly reflect the economic events that occurred during the accounting period.Auditing is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between the assertions and established criteria and communicating the results to interested users.AAS 1Audit is an independent examination of financial information of any entity whether profit making or not, irrespective of its size & legal structure when such an examination is conducted with view to express an opinion thereon.CAG of indiaAudit an instrument of financial contrl. It acts as a safeguard on behalf off the proprietor (whether an individual or group of persons) against extravagance, carelessness or fraud on the parts of the propertiors agent or servants in the realization and utilization of the money or other assets and its ensures on the proprietors behalf that the accounts maintained truly represent facts and that the expenditure has been incurred with due regularity and propriety. The agency employed for this purpose is called an auditor.