Auditors contribute significantly to the value of a business, the capital markets, and investors. Did you know that all businesses must undergo a statutory audit? Every firm that is registered as a Private Limited or a Public Limited company under the Companies Act must have its books of accounts audited every year. Internal auditing can be done by employees or department heads, and external auditing can be done by a firm or an independent auditor. The goal is for an independent body to audit and verify the accounts to ensure that the books of accounts are completed fairly and that no misrepresentation or fraud is taking place. Before they can announce their quarterly results, all publicly traded companies must have their accounts examined by an independent audit. The auditing procedure is divided into four steps. The first is to establish the auditor's role and conditions of engagement, which is commonly done in the form of a letter that the client signs. The second step is to plan the audit, which includes specifics such as timelines and departments that the auditor would examine. The next crucial step is to compile the data gathered during the audit.. The final and most crucial aspect of an audit is reporting the findings. In the auditor's report, the findings are documented.

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