Auditing: Auditing is a systematic and scientific examination of a company's books of accounts and records for the auditor to be satisfied that the profit and loss account and balance sheet are adequately prepared to present an accurate and fair picture of the company's financial situation and profit or loss for the financial period.
Continuous Audit: An audit that includes a complete and exhaustive inspection of the accounting records and accounting activity at frequent periods throughout the year.
Errors: Innocent and unintentional mistakes made while making entries in the accounting records.
Frauds: Frauds are fictitious entries created in accounting books for specific reasons.
Interim Audit: An audit carried out for a portion of the accounting period for a specific reason.
Investigation: Accounts are examined for a specific reason in an inquiry.
Qualified Auditor: A qualified auditor is a Chartered Accountant as defined by the Chartered Accountants Act.
Statutory Audit: A statutory audit is carried out by a specific statute or Act.
True and Fair View: A phrase that denotes the financial accounts must not contain anything false, unfair, unlawful, immoral, or unethical, i.e., they must be free of errors and fraud.