An audit is a systematic and independent examination of books, accounts, statutory records, documents and vouchers of an organization to ascertain how far the financial statements as well as non financial disclosures present a true and fair view of the concern. It also attempts to ensure that the books of accounts are properly maintained by the concern as required by various laws in India.
An Internal Audit is of vital importance as it presents the true picture of state of affairs of an entity. It helps in understanding and assessing risks and evaluates the internal controls and checks. In addition, it also ensures maximum utilization of the available resources along with timely identification of liabilities including the ones in contingent nature.