Audit can be done internally by employees or heads of a particular department and externally by an outside firm or an independent auditor. The idea is to check and verify the accounts by an independent authority to ensure that all books of accounts are done in a fair manner and there is no misrepresentation or fraud that is being conducted.
Objectives of Auditing
1. Ensure Reliability and authenticity of books of accounts
2. Prevention and detection of errors and Frauds