i am going to start a post about Auditing important definitions
this question was compulsory in 2011 css paper.
hope it will be beneficiary for aspirants who opt accounting and auditing.







Audit.
A.W.Hanson.
“An audit is an examination of such records to establish their reliability and the reliability of statements drawn from them.”
Montgomery says.
“Auditing is a systematic examination of the books and the records of a business or other organization, in order to ascertain or verify and report upon the facts regarding its financial operation and the result thereof.”
Types of audit according to time.
1) Continuous audit.
2) Interim audit.
3) Final audit.
Continuous audit.
The audit which remain continue throughout the year is called continuous audit.
Interim audit.
When an audit is conducted up to a particular date within the accounting period, it called and interim audit.
Final audit.
Final audit is an audit which is commenced after the end of the financial period, and is then carried on until completed.
Audit program.
Audit program is a written scheme or list of work to be done by an auditor and his staff.
HOWARD F. STETTLER
“Audit program is an outline of all procedures to be followed in order to arrive at an opinion concerning a client’s financial statements.”
Audit standards.
The basic principles and practices which are normally expected to be followed by the auditor in the conduct of audit are called auditing standards.
Auditor.
A person who is appointed to examine the books of accounts of a business entity and to report upon them to such entity member is called auditor.
Qualification of an auditor.
The auditor must be a chartered accountant.
Types of audit on the basic of organizational structure.
1)
2) Statutory audit.
3) Governmental audit.
4) Private audit.
Statutory audit.
An audit which is compulsory for limited companies under the Companies Ordinance 1984, Banking Companies Ordinance 1962, Insurance Act 1938, and Co-Operative Societies Rules 1927 etc. performed by a Chartered Accountant is called statutory audit.
Governmental audit.
An audit which is concerned with municipal committee, Govt department and organization and auditor general general is authorized to conduct this audit is called governmental audit.
Private audit.
An audit which is voluntarily conducted to examine the accounts of sole tradership and partnership is called private audit.
It is not compulsory according to law, so it is called private audit.