The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product. The term most commonly refers to audits in accounting, but similar concepts also exist in project management, quality management, and even energy conservation.
Audit in Accounting
Audits are performed to ascertain the validity and reliability of information; also to provide an assessment of a system's internal control. The goal of an audit is to express an opinion on the person / organization / system (etc) in question, under evaluation based on work done on a test basis.
Audit is a vital part of accounting - that is an undeniable fact. We interviewed one ACCA student, studying at professional level, who was kind enough to share his experience; “Wherever we went (to audit clients) we have been received with respect. Our clients believe that we are able to do something that they don’t. Families and friends seek our opinion in non-accounting matters. So with the respect that this profession has, I believe that firms and auditors should be more sensible and responsible”.
The Definition for Auditing and Assurance Standard (AAS) 1 by ICAI - "Auditing is the independent examination of financial information of any entity, whether profit oriented or not, and irrespective of its size or legal form, when such an examination is conducted with a view to expressing an opinion thereon."
As an auditor, we sell our trustworthiness to clients. Damaging that expensive commodity might affect the business. Some auditors believe that the scope of audit could even be extended from simply giving an opinion on financial statements alone to engaging on issues such as risk management etc.
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