The financial activities of a company or business firm is observed, examined and evaluated. This process is called auditing. This is done mainly to confirm that financial statements that is, income statement, balance sheet and cash flow statements are made maintaining the exact accounting standards. This accounting also helps in understanding the present economic situation of the firm. There are mainly three types of audits, internal, external and government. Internal auditing is done by the employees of the company and is mainly done to know the inefficiencies in finance reports before an external auditing occurs. The external auditor is mainly a third-party organization made use to check any mismatch or mistakes in the statements. Government auditing mainly focuses on any misrepresentation of taxable income of the business. In case of any misstatements of taxable income, it will be considered as tax fraud. The details of this topic can be viewed in the PowerPoint presentation.

Saket Kumar

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