1. Auditing is a systematic procedure that follows a set of guidelines. The process of auditing an organization's accounts for accuracy is a rational and scientific technique. It's essential to follow the regulations and procedures.
2. The audit is always carried out by an impartial authority or a group of educated professionals. They must be self-sufficient for their ideas and opinions to be completely objective.
3. An audit entails a thorough inspection of the company's books of accounts and financial data. As a result, it's simply a check of the organization's final accounting, such as the financial statement and balance sheet at the end of the financial year.
4. Auditing includes the inspection of the accounting records and the company's internal procedures and internal control.
5. It needs a variety of sources of information to conduct the audit. Vouchers, paperwork, certificates, questionnaires, and explanations are examples of this. Auditor has the authority to examine any other documents he deems necessary, such as the Memorandum of Association, Articles of Association, vouchers, minute books, shareholders registry, and so forth.
6. The auditor must be completely satisfied with the financial statements' accuracy and reliability. Only then can he say that the assertions are accurate and fair.