Is it necessary to have regular Audits? An audit is an "independent examination of financial information of any entity, whether profit-oriented or not, irrespective of its size or legal form when such an examination is conducted to express an opinion thereon.” The audit is an important term used in accounting that describes the examination and verification of a company's financial records. Also, audits are performed to ensure that financial statements are prepared by the relevant accounting standards. The three primary financial statements are the income statement. The objective of an audit is to form an independent opinion on the financial statements of the audited entity. The opinion includes whether the financial statements show a true and fair view, and have been properly prepared by accounting standards. The audit process is similar for most engagements and normally consists of four stages: Planning (sometimes called Surveyor Preliminary Review), Fieldwork, Audit Report and Follow-up Review. Client involvement is critical at each stage of the audit process.

Sruthy Santhosh

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