English Factozzium - Audit

Audit

Audit (Latin audit - to listen) is a review of accounting data and financial statements of a business entity to express an independent opinion of the auditor on its reliability in all material aspects and compliance with the requirements of the laws of Ukraine, accounting regulations (standards) or other rules (internal regulations of business entities) in accordance with the requirements of users.

In English-language sources, an audit is defined as an assessment of a person, organization, system, process, enterprise, project or product. In Ukraine, this term most often refers to an audit in the field of accounting, but, due to the influence of English-language sources, the term is also used in the field of project management, quality management, natural resource management and energy conservation, etc.

History of audit development

Certain forms of financial control, which include audit, existed in ancient Egypt (around 2600 BC), where there were officials who combined accounting and control functions. In the Roman Empire (III century BC), the task of control was carried out by special employees, the so-called curators. At the same time, procurators, who were provincial governors, financial officials responsible for securing state revenues, and quaestors were in charge of financial and judicial affairs. In ancient Greece, special attention was paid to controlling the safety of property, including property. The Greeks considered theft as material damage. The shortage of valuables was covered by the person financially responsible or his or her guarantors, and if the shortage was defined as theft, it was reimbursed in ten times the amount.

Athens had special officials and controllers whose duties included preparing reports on the state's income and expenditures and controlling them. In Italy, auditing spread after the fall of the Roman Empire. Merchants of Florence, Genoa and Venice used the work of auditors to check the solvency of captains of merchant ships that transported goods to other European countries. At that time, the purpose of control was to prevent errors in accounting books.

The next milestone in the development of audit was the heyday of the Italian city-states. There was a simultaneous coexistence of control at the private and public levels.

Source


Ukrainian Wikipedia. Article Audit.

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